Answer :

Hi1315

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]