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 answer to two decimal places as needed
To determine the accrued interest, we can use the formula for simple interest:
Accrued Interest = Principal * Interest Rate * Time
Substituting the given values, we have:
Accrued Interest = 10,000 * 0.0475 * 13
= 6,175
Therefore, the accrued interest is $6,175.
To find the final amount, 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.