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 find the accrued interest, we use the formula:
Accrued Interest = Principal * Rate * Time
where the principal is $10,000, the rate is 4.75% (or 0.0475), and the time is 13 years. Plugging in the values, we get:
Accrued Interest = $10,000 * 0.0475 * 13
Accrued Interest = $6,175
Therefore, the accrued interest is $6,175.
To find the final amount of the investment, we add the accrued interest to the principal:
Final Amount = Principal + Accrued Interest
Final Amount = $10,000 + $6,175
Final Amount = $16,175
Therefore, the final amount of the investment is $16,175.