determine the accure intrest and the final amount of a 10,000 investment with a 4.75% simple interest rate bover a period of 13 years. move the decimal points as needed
To determine the amount of interest and the final amount, we will use the formula for simple interest:
I = P * r * t
Where:
I is the interest amount
P is the principal amount (initial investment)
r is the interest rate per year
t is the time in years
First, let's calculate the interest amount:
I = 10,000 * 0.0475 * 13
I = 4,925
The interest amount is $4,925.
To calculate the final amount, we add the interest to the principal:
Final Amount = Principal + Interest
Final Amount = 10,000 + 4,925
Final Amount = 14,925
The final amount is $14,925.