An investor puts $4,500 into a life insurance policy that pays 8.0% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 8 years?
Please help🙏🏽
Using the simple interest formula:
Interest = Principal x Rate x Time
where:
Principal = $4,500
Rate = 8.0%
Time = 8 years
Interest = $4,500 x 0.08 x 8
Interest = $2,880
Therefore, the accumulated interest at the end of 8 years should be $2,880.