Concept:
A polygon is formed by selecting $k$ vertices from a given set of $n$ points. The number of ways to choose $k$ points from $n$ points is given by the combination formula ${}^nC_k = \frac{n!}{k!(n-k)!}$. To form a polygon, we need a minimum of 3 points.
Step 1: Identify the possible types of polygons.
We have 5 points available on the circle ($n=5$). A polygon requires 3 or more sides. Therefore, we can form:
1. Triangles (choosing 3 points)
2. Quadrilaterals (choosing 4 points)
3. Pentagons (choosing 5 points)
Step 2: Calculate the number of triangles.
We choose 3 points out of 5 to form triangles:
$${}^5C_3 = \frac{5!}{3!(5-3)!} = \frac{5 \times 4 \times 3!}{3! \times 2 \times 1} = \frac{20}{2} = 10$$
There are 10 distinct triangles.
Step 3: Calculate the number of quadrilaterals.
We choose 4 points out of 5 to form quadrilaterals:
$${}^5C_4 = \frac{5!}{4!(5-4)!} = \frac{5 \times 4!}{4! \times 1} = 5$$
There are 5 distinct quadrilaterals.
Step 4: Calculate the number of pentagons.
We choose 5 points out of 5 to form pentagons:
$${}^5C_5 = 1$$
There is 1 distinct pentagon.
Step 5: Find the total number of polygons.
Add the number of each type of polygon together to get the final answer:
$$\text{Total} = 10 + 5 + 1$$
$$\text{Total} = 16$$
Hence the correct answer is (D) 16.