Find the amount paid for the loan.
$2400 at 10.5% for 5 years
2400 * 1.105^5 = ____
To find the amount paid for the loan, we need to calculate the total interest and add it to the principal amount.
First, let's calculate the interest using the formula:
Interest = Principal × Rate × Time
where:
Principal = $2400
Rate = 10.5% (convert to decimal by dividing by 100, so 10.5/100 = 0.105)
Time = 5 years
Interest = $2400 × 0.105 × 5
Interest = $1260
Now, to find the total amount paid for the loan, we add the principal and the interest:
Total amount paid = Principal + Interest
Total amount paid = $2400 + $1260
Total amount paid = $3660
Therefore, the amount paid for the loan is $3660.