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 answer to two decimal places as needed.
The accrued amount interest is $______and the final amount of the investment is $______.
The formula to calculate simple interest is: Interest = (Principal) x (Rate) x (Time).
Using this formula, we can calculate the accrued interest first:
Interest = (10,000) x (0.0475) x (13)
= $6,137.50
To find the final amount of the investment, we need to add the accrued interest to the principal:
Final Amount = Principal + Accrued Interest
Final Amount = 10,000 + 6,137.50
= $16,137.50
Therefore, the accrued amount interest is $6,137.50 and the final amount of the investment is $16,137.50.