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.(1 point)
The accrued interest is $__
and the final amount of the investment is $__
.
The formula for calculating simple interest is:
Interest = Principal x Rate x Time
Given:
Principal = $10,000
Rate = 4.75%
Time = 13 years
Accrued Interest = Principal x Rate x Time
Accrued Interest = $10,000 x 0.0475 x 13
Accrued Interest = $4,175
Final amount of the investment = Principal + Accrued Interest
Final amount of the investment = $10,000 + $4,175
Final amount of the investment = $14,175
Therefore, the accrued interest is $4,175 and the final amount of the investment is $14,175.