Answer: He would pay $43492.33 in total over the course of the 5 years.
Step-by-step explanation:
Since we have given that
Amount he borrowed = $32500
Rate of compounded annually = 6%
Number of years = 5 yr
As we know the formula for "Compound Interest':
[tex]A=P(1+\frac{r}{100})^n\\\\A=32500(1+\frac{6}{100})^5\\\\A=32500(\frac{100+6}{100})^5\\\\A=32500(1.06)^5\\\\A=\$43492.33[/tex]
Hence, He would pay $43492.33 in total over the course of the 5 years.
