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.
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.