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)
To determine the accrued interest amount of a simple interest loan, you can use the formula:
Interest = Principal * Rate * Time
Here, the principal (P) is $5,000, the rate (R) is 5.4%, and the time (T) is 8 years. Plugging these values into the formula, we get:
Interest = $5,000 * 0.054 * 8
Interest = $2,160
Therefore, the accrued interest amount of the student loan is $2,160.