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The question asks about Mr. Cruz, who borrows **500,000 PHP** at an interest rate of **5%** for **2 years**. We are to find out the **future value of the loan** after 2 years.

This is a simple interest problem, which can be solved using the formula:

\[
A = P(1 + rt)
\]

Where:
- \( A \) is the future amount (the total loan to be paid),
- \( P \) is the principal amount (500,000 PHP),
- \( r \) is the interest rate (5% or 0.05),
- \( t \) is the time (2 years).

Now, applying the values to the formula:

\[
A = 500,000(1 + (0.05 \times 2))
\]
\[
A = 500,000(1 + 0.10)
\]
\[
A = 500,000 \times 1.10
\]
\[
A = 550,000 \, \text{PHP}
\]

Thus, **Mr. Cruz will pay 550,000 PHP** after 2 years.

Do you want further details or have any questions?

Here are 5 related questions for further exploration:
1. How would the amount change if the loan duration were extended to 5 years?
2. What happens if the interest rate increases to 7%?
3. What would be the interest alone that Mr. Cruz has to pay after 2 years?
4. How would the future value change with compound interest instead of simple interest?
5. If Mr. Cruz repays half the loan after 1 year, what would the total payment be?

**Tip:** In simple interest loans, interest is calculated only on the original principal, not on any accumulated interest.

Mr. Cruz wants to renovate his ancestral house. For him to do that, he borrowed 500,000 Php in the bank at a rate of 5%. How much will Mr. Cruz pay if the loan term is 2 years? What will be his future loan in 2 years?

Learn how to calculate the future value of a 500,000 PHP loan using the simple interest formula at a 5% annual rate for 2 years. This problem involves understanding basic interest calculations and applying the formula A = P(1 + rt). Suitable for students in Grades 9-10.

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