Given:
- P= $50,000
- R= 10%
- T= 5 years
Note that:
- P= Principal amount
- R= Rate of interest
- T= Time period
Solution:
[tex]\large\boxed{Formula: A= P(1+ \frac{R}{100}{)}^{T}}[/tex]
Let's substitute according to the formula.
[tex]A= 50000(1+ \frac{10}{100}{)}^{5}[/tex]
A= $80525.5
Now, we can find the interest paid
[tex]\large\boxed{I= A-P}[/tex]
We'll have to deduct the total amount from the principal amount.
Let's substitute according to the formula.
[tex]I= 80525.5-50000[/tex]
I= $30525.5
Hence, the total amount paid after 5 years is $80525.5 and $30525.5 was paid as interest.
