N amount of $15,000 is borrowed for 10 years at 8.75% interest, compounded annually. if the loan is paid in full at the end of that period, how much must be paid back?

We should determine amount of interest per year.

Multiply the percentage to the former loan.

interest per year = 8.75% * 15,000

interest per year = 0.0875 * 15,000

interest per year = 1,312.5

Amount of interest each year is $1,312.5

Estimate interest for 10 years

interest 10 years = interest per year * 10

interest 10 years = 1,312.5 * 10

interest 10 years = 13,125

Amount of interest for 10 years is $13,125

Calculate how much he pay

total = the loan + the interest

total = 15,000 + 13,125

total = 28,125

The total he must pay is $28,125