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
To 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, we can use the formula:
Accrued Interest = Principal (P) × Rate (r) × Time (t)
Accrued Interest = $10,000 × 0.0475 × 13
Accrued Interest = $4,887.50
To calculate the final amount, we need to add the accrued interest to the principal:
Final Amount = Principal + Accrued Interest
Final Amount = $10,000 + $4,887.50
Final Amount = $14,887.50
Therefore, the accrued interest is $4,887.50 and the final amount of the investment is $14,887.50.