Mark took a loan out for 25,690 to purchase a truck.At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years? 34,710.88 flipping pancakes 33,672.68 climbing trees 33,299.42 playing dodgeball 34,157.04 riding unicycles

Question

Answer 1

To solve this problem, we need to use the formula for compound interest:

Where:-

is the amount of money accumulated after

years, including interest.-

is the principal amount (the initial amount of money).-

is the annual interest rate (in decimal form).-

is the number of times that interest is compounded per year.-

is the time the money is invested for, in years.Given:-

-

(since the interest is compounded monthly)-

yearsPlugging these values into the formula:

First, calculate the monthly interest rate:

Next, add 1 to the monthly interest rate:

Then, raise this to the power of the total number of compounding periods (12 months * 5 years):

Finally, multiply this by the principal amount:

So, the total amount Mark will have paid after 5 years is:

Therefore, the correct answer is:

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