1. **State the problem:** Diana took out a school loan of 524000 with an interest rate of 5% per year and paid it off in 5 years. We need to find the total amount she paid. 2. **Formula used:** For simple interest, the total amount paid is given by: $$A = P + I$$ where $P$ is the principal (initial loan), and $I$ is the interest. The interest $I$ is calculated by: $$I = P \times r \times t$$ where $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Calculate the interest:** Convert the interest rate to decimal: $$r = 5\% = 0.05$$ Time $t = 5$ years. Calculate interest: $$I = 524000 \times 0.05 \times 5 = 524000 \times 0.25 = 131000$$ 4. **Calculate total amount paid:** $$A = P + I = 524000 + 131000 = 655000$$ 5. **Answer:** Diana paid a total of 655000 to pay off the loan after 5 years.