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.(1 point)

Question

The accrued interest amount is $
.

Answer 1

The accrued interest amount can be calculated using the formula:

Accrued Interest = Principal x Rate x Time

Plugging in the given values:
Principal = $5,000
Rate = 5.4% = 0.054
Time = 8 years

Accrued Interest = $5,000 x 0.054 x 8 = $2,160

So, the accrued interest amount is $2,160.