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
