To calculate the accumulated interest at the end of 10 years, we can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
Where:
Principal = $2,300
Rate = 7.5% or 0.075
Time = 10 years
Plugging in the values, we get:
Simple Interest = $2,300 x 0.075 x 10 = $1725
Therefore, the accumulated interest the investor should expect at the end of 10 years is $1725.
An investor puts $2,300 into a life insurance policy that pays 7.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?
$1725
$4740.37
2440.37
$4025
1 answer