Answer:
The total interest amount that Tamora will have paid in 10 years=$6.496.76
Step-by-step explanation:
Step 1: Express the formula for calculating total amount of interest
The total amount of interest to be paid can be expressed as;
A={P(1+r/n)^nt}-P
where;
A=total amount of interest
P=principal amount of loan
r=annual interest rate
n=number of compounding periods in a year
t=number of years
In our case;
P=$9,100
r=5.4%=5.4/100=0.054
n=12
t=10 years
Step 2: Replace the values and solve
A=9,100{(1+0.054/12)^(12×10)}-9,100
A=9,100{(1.0045)^120}-9,100
A=6,496.757596
The amount rounded off to nearest cent 1/100=0.01 is the same as rounding off to nearest decimal places
A=$6.496.76
The total interest amount that Tamora will have paid in 10 years=$6.496.76
