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 $__
To calculate the accrued interest, we use the formula:
Accrued Interest = Principal × Interest Rate × Time
where the Principal is $10,000, the Interest Rate is 4.75%, and the Time is 13 years:
Accrued Interest = $10,000 × 0.0475 × 13
= $6,175
Therefore, the accrued interest is $6,175.
To calculate the final amount of the investment, we add the accrued interest to the principal:
Final Amount = Principal + Accrued Interest
= $10,000 + $6,175
= $16,175
Therefore, the final amount of the investment is $16,175.