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)
$3,600
• $58,500
• $72,000
$26,100
To calculate the final loan amount, we can use the formula:
Final Loan Amount = Principal + (Principal * Interest Rate * Time)
In this case:
Principal = $22,500
Interest Rate = 3.2% = 0.032 (as a decimal)
Time = 5 years
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 final loan amount is $26,100.