Question

Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded annually, how much total will he have paid after 5 years? *

Answer 1

Answer: he would have paid $33101 after 5 years

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount paid at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount taken as loan.

From the information given,

P = 25690

r = 5.2% = 5.2/100 = 0.052

n = 1 because it was compounded once in a year.

t = 5 years

Therefore,.

A = 25690(1+0.052/1)^1 × 5

A = 25690(1.052)^5

A = 33101

Answer 2

Answer:

I think the answer is 1335.88

Step-by-step explanation:

5.2% of 25,690 is 1335.88