I was about to give you the formula you need,
but I see you already have it.
Simple interest: I = P · r · t
Interest = (Principle) · (rate) · (time)
The question says ...
Principle = $12,550
Rate = 2.7% (that's 0.027)
Time = 5 years
Now it's your turn.
Write the numbers into the formula, and calculate the interest.
2.3 miles+1760 yards per mile= 4048 yards total
Final answer: B