Answer:
A = $27113.15
Step-by-step explanation:
We need to consider the compound interest formula to calculate the total amount Lana will pay for the loan.
The formula for calculating compound interest is:
[tex]\sf A = P(1 + r/n)^n^t[/tex]
Where:
A = Total amount (including principal and interest)
P = Principal amount (initial loan amount) → $24,000
r = Annual interest rate (as a decimal) → 10%
n = Number of times the interest is compounded per year → 12 (monthly compounding)
t = Number of years → 10
Using these values, we can calculate the total amount (A) Lana will pay:
[tex]\sf A = P(1 + r/n)^n^t[/tex]
Let's calculate it step by step:
[tex]\sf A = 24000(1 + 0.008333)^1^2^0\\\\A = 24000(1.008333)^1^2^0\\\\A = 24000(1.129698)\\\\A = $27113.15[/tex]
