Answer :
Answer:
$ 320
Step-by-step explanation:
To calculate the simple interest on a loan, you can use the formula:
[tex]\[ \text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \][/tex]
Where:
- Principal is the initial amount of money
- Rate is the interest rate per period
- Time is the duration for which the money
Given:
- Principal = $16,000
- Rate = 8% per annum
- Time = 3 months (expressed in years, [tex]\T = \frac{3}{12} = \frac{1}{4}[/tex])
Now, plug these values into the formula:
[tex]\text{Simple Interest} = 16,000 \times 0.08 \times \frac{1}{4} \\\\ \text{Simple Interest} = 16,000 \times 0.08 \times 0.25 \\\\ \text{Simple Interest} = 16,000 \times 0.02 \\\\ \text{Simple Interest} = 320[/tex]
