Answer: 1260
Explanation:
To solve for simple interest, we can use the formula:
I = P * r * t
where:
I = interest
P = principal amount
r = interest rate
t = time (in years)
In this case:
P = 2400
r = 10.5% = 0.105 (note that we convert the percentage to a decimal)
t = 5
Substituting these values into the formula, we get:
I = 2400 * 0.105 * 5
I = 1260
Therefore, the simple interest on a principal amount of 2400 at 10.5% for 5 years is 1260.