Answer: To calculate the total amount you will pay to the lending institution, you need to consider the loan amount, the monthly interest rate, and the loan term.
1. Calculate the monthly interest payment:
The monthly interest payment can be found by multiplying the loan amount by the monthly interest rate. In this case, the loan amount is $10,000 and the monthly interest rate is 0.005.
Monthly interest payment = $10,000 * 0.005 = $50
2. Calculate the total interest paid over the loan term:
To find the total interest paid over the loan term, multiply the monthly interest payment by the number of months in the loan term. In this case, the loan term is 48 months.
Total interest paid = $50 * 48 = $2,400
3. Calculate the total amount paid to the lending institution:
To find the total amount paid, you need to add the loan amount to the total interest paid.
Total amount paid = Loan amount + Total interest paid
Total amount paid = $10,000 + $2,400 = $12,400
Therefore, the total amount you will pay to the lending institution is $12,400.