The principal $15,400 is accumulated with simple interest of 16% for 5 years.
A) $27,720
B) $15,892.80
C) $12,320
D) $20,212.50

Question

Quizplus · Accepted Answer

The simple interest can be calculated using the formula I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years. Here, P = $15,400, R = 16% or 0.16, and T = 5 years. So, I = $15,400 * 0.16 * 5 = $12,320. The total amount accumulated is the principal plus the interest, which is $15,400 + $12,320 = $27,720.

The Principal $15,400 Is Accumulated with Simple Interest of 16