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

To determine the accrued interest amount, we need to use the simple interest formula:

Interest = principal x rate x time

Given that the principal (P) is $5,000, the rate (r) is 5.4% (or 0.054 in decimal form), and the time (t) is 8 years, we can calculate the accrued interest amount:

Interest = $5,000 x 0.054 x 8

Interest = $2,160

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