From the compound interes formula, given by
[tex]A=P(1+\frac{r}{n})^{n\cdot t}[/tex]where A is the future amount, P is the principal value, r is the rate, n is the number of times interest per unit of time t, we have
[tex]\begin{gathered} A=38000(1+\frac{0.0875}{1})^{1\cdot6} \\ A=38000(1+0.0875)^6 \end{gathered}[/tex]which gives
[tex]\begin{gathered} A=38000(1.0875)^6 \\ A=62857.8019 \end{gathered}[/tex]Then, since the loan is paid in full at the end of the year, we must paid back: $62,857.80
