Answer:
$30,960
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.
[tex]I = Prt[/tex]
P = initial balance
r = annual interest rate
t = time
First, change 9% into a decimal:
9% -> [tex]\frac{9}{100}[/tex] -> 0.09
Next, plug the values into the equation:
[tex]I=21,500(0.09)(16)[/tex]
[tex]I=30,960[/tex]
The simple interest earned is $30,960
