Answer:
$ 320
Step-by-step explanation:
To calculate the simple interest on a loan, you can use the formula:
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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, \(\T = \frac{3}{12} = \frac{1}{4}\))
Now, plug these values into the formula:
\(\text{Simple Interest} = 16,000 \times 0.08 \times \frac{1}{4} \\\\ \text{Simple Interest} = 16,000 \times 0.08 \times 0.25 \\\\ \text{Simple Interest} = 16,000 \times 0.02 \\\\ \text{Simple Interest} = 320\)
