To find the amount of interest for a 16-year investment using simple interest, we use the formula:

$I = P \times r \times t$

where:

• $I$ is the interest,
• $P$ is the principal (initial investment),
• $r$ is the annual interest rate (in decimal form),
• $t$ is the time in years.

Given:

• $P = 6500$,
• $r = 2.40\% = 0.024$,
• $t = 16$ years.

Substitute the values into the formula:

$I = 6500 \times 0.024 \times 16$

Now, let's calculate the interest.The amount of interest for the 16-year investment is 2496.00.

Would you like more details or have any further questions?

Here are 5 related questions to deepen your understanding:

1. How would the interest change if the investment period was 20 years instead of 16?
2. What would the interest be if the annual rate was 3%?
3. How is simple interest different from compound interest?
4. How can you calculate the total amount (principal + interest) at the end of the investment period?
5. If the principal was $7000 instead of $6500, how much interest would be earned over 16 years?

Tip: Always express percentages as decimals when using them in calculations (e.g., 2.4% becomes 0.024).