If Bruce decides to take the loan of US$ 1000 and pay it back in a period of 5 years at a compound annual interest rate of 10% (which compounds once each year), this means that the total amount of money he will end up paying is US$ 1610.51 that is formed by the sum of the original amount loaned ($ 1000) and the interest accumulated during the 5 years ($ 1610.51) . This represents an annual payment of US$ 322.1.