Question
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
Responses
$3,600
$3,600
$26,100
$26,100
$58,500
$58,500
$72,000
Answers
GPT 3.5
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.
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.