Determine the accrued interest and the final amount of a $10000 investment with a 4.75% simple interest rate over a period of 13 years. Round the answer to two decimal places as needed
To find the accrued interest, we can use the formula:
Accrued Interest = principal (investment amount) * interest rate * time
Accrued Interest = $10000 * 0.0475 * 13 = $6187.50.
The final amount of the investment can be calculated by adding the accrued interest to the principal.
Final amount = principal + accrued interest
Final amount = $10000 + $6187.50 = $16,187.50.
Therefore, the accrued interest is $6187.50 and the final amount is $16,187.50.