The amount to be paid at the end of the loan period will be $33,120. The rate of interest on the loan is given as per annum and hence the interest is to be calculated for 6 months.
Given:
[tex]\rm Principal &= \$32,000\\\\Rate &= 7\%\:per\:annum\\\\Tenure = 6\:months[/tex]
Interest is calculated from the following formula:
[tex]\rm Interest = Principal\times Rate \times Tenure[/tex]
Hence the interest for the loan will be:
[tex]\begin{aligned}\rm Interest &= \$32,000\times 7\% \times 6\: months\\\\&= 32,000 \times \dfrac{7}{100}\times \dfrac{6}{12}\\\\&= \$1,120\end[/tex]
The final payment for the loan will be the combination of principal and interest.
Therefore final payment = $32,000 +$1,120
= $33,120
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