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)

Answer 1

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.