Step-by-step explanation:
Assuming that the loan has a fixed interest rate, we need to know the interest rate in order to calculate the amount that Bruce will owe after five years.
For the purpose of this example, let's assume that the interest rate is 5% per year (this is just an example, the actual interest rate may vary).
Using the formula for compound interest, we can calculate the amount that Bruce will owe after five years:
A = P(1 + r/n)^(n*t)
where:
A = the amount that Bruce will owe after five years
P = the initial principal (the amount that Bruce borrowed), which is $1,000
r = the annual interest rate, which is 5% (or 0.05 as a decimal)
n = the number of times the interest is compounded per year (let's assume it's compounded annually, so n = 1)
t = the number of years, which is 5
Plugging in these values, we get:
A = 1000(1 + 0.05/1)^(1*5)
A = 1000(1.05)^5
A = 1000(1.27628)
A = $1,276.28
Therefore, if Bruce waits for five years to begin paying back his loan with a 5% annual interest rate, he will owe $1,276.28.