Answer:
$16,800
Step-by-step explanation:
The simple interest formula is given as under
I = PRT
where
I is interest which we need to find
P is principle = $16000
R is rate of Interest = 5.25% = 0.0525
T is the time = 20 years
Substituting these values in the formula we get
I = 16000 x 0.0525 x 20
I = 16800
Hence the interest earned will be $16800
