Answer: $49,000
Explanation: In order to calculate how much he will need to repay we first need to calculate the amount of interest that he will pay. The formula for interest is Interest = Principal x rate x time.
Using the formula, Interest = $35,000 x .08 x 5, Interest = $14,000
On July 1, 2022 Hugh will need to repay the principal that he borrowed, which was $35,000 plus the interest of $14,000, which is a total of $49,000.
The amount that hugh will have to repay on july 1, 2022 is $51,426.48.
Using this formula
A=P(1+r/100)^n
Where:
P=$35,000
r=8%
n=5 years
Let plug in the formula
A=$35,000(1+0.08)^5
A=$35,000×(1.08)^5
A=$35,000×1.4693280768
A=$51,426.48
Inconclusion the amount that hugh will have to repay on july 1, 2022 is $51,426.48.
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