Determine the accrued interest amount of a $5,000 student loan with a simple interest rate of 5.4% over a period of 8 years. Round the answer to two decimal places as needed.
The accrued interest amount is $___
The formula to calculate accrued interest is:
Accrued Interest = Principal x Rate x Time
Given:
Principal (P) = $5,000
Rate (r) = 5.4% = 0.054
Time (t) = 8 years
Using the formula:
Accrued Interest = $5,000 x 0.054 x 8
Accrued Interest = $2160
Therefore, the accrued interest amount is $2,160.
To calculate the final amount of Chris's investment, we can use the formula for simple interest:
Final Amount = Principal + (Principal x Rate x Time)
Given:
Principal (P) = $15,000
Rate (r) = 4.8% = 0.048
Time (t) = 30 years
Using the formula:
Final Amount = $15,000 + ($15,000 x 0.048 x 30)
Final Amount = $15,000 + $21,600
Final Amount = $36,600
Therefore, the final amount of Chris's investment is $36,600.
To prepare for retirement, Chris invests $15,000 with a simple interest rate of 4.8%. Find the final amount of Chris’s investment if he invests this amount for the next 30 years. Round the answer to two decimal places as needed.
The final amount of Chris’s investment is $____
Anne invests $7,000 into a retirement account with a compound interest rate of 3.3% compounded quarterly. What is Anne’s final amount after 25 years of investment? Round the answer to the nearest cent.
Anne’s final amount after 25 years of investment is $___
Wrong try again
To calculate the final amount using compound interest, we can use the formula:
Final Amount = Principal x (1 + Rate/Compounding Period)^(Compounding Period x Time)
Given:
Principal (P) = $7,000
Rate (r) = 3.3% = 0.033
Compounding Period (n) = 4 (quarterly compounding)
Time (t) = 25 years
Using the formula:
Final Amount = $7,000 x (1 + 0.033/4)^(4 x 25)
Final Amount = $7,000 x (1 + 0.00825)^100
Final Amount ≈ $7,000 x (1.00825)^100
Final Amount ≈ $7,000 x 1.34986
Final Amount ≈ $9,449.02
Therefore, Anne's final amount after 25 years of investment is approximately $9,449.02.
Apologies for the mistake. Let's calculate the correct final amount using the correct formula for compound interest:
Final Amount = Principal x (1 + Rate/Compounding Period)^(Compounding Period x Time)
Given:
Principal (P) = $7,000
Rate (r) = 3.3% = 0.033
Compounding Period (n) = 4 (quarterly compounding)
Time (t) = 25 years
Using the formula:
Final Amount = $7,000 x (1 + 0.033/4)^(4 x 25)
Final Amount = $7,000 x (1 + 0.00825)^100
Final Amount = $7,000 x (1.00825)^100
Final Amount ≈ $7,000 x 1.346856
Final Amount ≈ $9,428.99
Therefore, Anne's final amount after 25 years of investment is approximately $9,428.99.