Final answer:
To solve a loan of $500,000.00 over a period of 3 years with an interest rate of 5%, you can use the formula: Total Amount = Principal + Interest. The interest for this loan is $75,000.00, so the total amount is $575,000.00.
Step-by-step explanation:
To solve a loan of $500,000.00 over a period of 3 years with an interest rate of 5%, you can use the formula for calculating the total future amount:
Total Amount = Principal + Interest
The principal is the initial loan amount, which is $500,000.00. To find the interest, you can use the formula:
Interest = Principal x Rate x Time
So, the interest for this loan is $500,000.00 x 0.05 x 3 = $75,000.00. Now, you can calculate the total amount by adding the principal and the interest:
Total Amount = $500,000.00 + $75,000.00 = $575,000.00