determine the accured interest amount of a $5000 student loan with a simple interest rate of 5.4% over a period of 8 years
To determine the accrued interest amount on a simple interest loan, you can use the formula:
Accrued Interest = Principal * Rate * Time
Given:
Principal (P) = $5000
Rate (R) = 5.4% or 0.054
Time (T) = 8 years
Accrued Interest = $5000 * 0.054 * 8
= $2160
Therefore, the accrued interest amount on the student loan would be $2160.