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 of a simple interest loan, you can use the following formula:
Accrued Interest = Principal (Loan Amount) * Rate * Time
In this case, the principal (loan amount) is $5,000, the rate is 5.4%, and the time is 8 years.
Accrued Interest = $5,000 * 0.054 * 8
Accrued Interest = $2,160
Therefore, the accrued interest amount of the student loan would be $2,160.