Xiao Zhang, a migrant worker, returned to his hometown to start a business and got a loan of 500,000 yuan from a local bank. The loan term is 2 years and the annual interest rate is 5%. If calculated according to compound interest, the loan is due. D

This question examines the knowledge points of the deposit interest calculation formula. Compound interest means that the loan interest in the first year becomes the loan principal in the second year. The calculation formula of deposit interest is: deposit interest = principal × interest rate × deposit term. The first year loan interest = 50× 5% = 25,000 yuan. The first year loan interest = 52.5× 5% = 26,250 yuan. The loan interest that Xiao Zhang needs to pay = 25,000 yuan+26,250 yuan = 565,438 yuan +0.250 yuan.