Calculate the final loan amount of a $22,500 auto loan with a 3.2% simple interest rate over a 5-year term.(1 point)
Responses
$26,100
$26,100
$72,000
$72,000
$58,500
$58,500
$3,600
To calculate the final loan amount, we can use the simple interest formula:
Final Loan Amount = Principal + (Principal * Interest Rate * Loan Term)
Since the principal (loan amount) is $22,500, the interest rate is 3.2%, and the loan term is 5 years, we can plug these values into the formula:
Final Loan Amount = 22,500 + (22,500 * 0.032 * 5)
Final Loan Amount = 22,500 + (22,500 * 0.16)
Final Loan Amount = 22,500 + 3,600
Final Loan Amount = $26,100
Therefore, the correct answer is $26,100.