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, we can use the formula:
Accrued Interest = Principal × Rate × Time
Accrued Interest = $10,000 × 0.0475 × 13
Accrued Interest = $6,175
To determine the final amount, 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 accrued interest is $6,175 and the final amount is $16,175.