Determine the accrued interest and the final amount of a $10,000 investment with a 4.75% simple interest rate over a period of 13 years. Round the answers to two decimal places as needed
The accrued interest is $___ and the final amount of the investment is $___
The formula to calculate simple interest is:
Interest = Principal * Rate * Time
The accrued interest can be calculated as follows:
Interest = $10,000 * 4.75% * 13 years
Using this formula, we can calculate the accrued interest:
Interest = $10,000 * 0.0475 * 13 = $6,175
The final amount of the investment can be calculated by adding the accrued interest to the principal:
Final amount = Principal + Interest = $10,000 + $6,175 = $16,175
Therefore, the accrued interest is $6,175 and the final amount of the investment is $16,175.