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)
To calculate the final loan amount, we need to find the total interest paid and add it to the principal loan amount.
The formula to calculate the total interest paid on a simple interest loan is:
Interest = Principal * Rate * Time
In this case, the principal loan amount is $22,500, the interest rate is 3.2%, and the time period is 5 years.
Interest = $22,500 * 0.032 * 5 = $3,600
Now, we can find the final loan amount by adding the interest to the principal loan amount:
Final Loan Amount = Principal + Interest
Final Loan Amount = $22,500 + $3,600 = $26,100
Therefore, the final loan amount is $26,100.