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
$3,600
$3,600
$26,100
$26,100
$58,500
$58,500
$72,000
To calculate the final loan amount with simple interest, we need to add the interest charged to the original loan amount.
The formula for simple interest is: Interest = Principal x Rate x Time
Interest = $22,500 x 0.032 x 5 = $3,600
Therefore, the final loan amount is $22,500 + $3,600 = $26,100.
So the correct answer is: $26,100.