Determine the accrued interest amount of a $5,000 student loan with a simple interest rate of 5.4% over a period of 8 years. Round the answer to two decimal places as needed.

Answer 1

To determine the accrued interest amount, we can use the formula:

Accrued interest = Principal * Interest rate * Time

Plugging in the given values, we have:

Accrued interest = $5,000 * 0.054 * 8

Accrued interest = $2,160

Rounding the answer to two decimal places, the accrued interest amount of the student loan is $2,160.