Determine the interest earned and the final amount in an account that begins with a

Question

$10,000 investment. It earns 4.75% simple interest for 13 years. Round the answers to
two decimal places.

*Drag and drop the correct answer into each spot.

*Remember to use your STAAR Reference Sheet for support!

(2 points)

The accrued interest is $

and the final amount in the account at the end of

the 13 years is $ !

# 5,000

: 6,175

# 15,000

# 16,175

Answer 1

To calculate the interest earned using simple interest, you can use the formula:

\[ I = P \times r \times t \]

Where:

• \( I \) is the interest earned
• \( P \) is the principal amount (the initial investment)
• \( r \) is the annual interest rate (in decimal)
• \( t \) is the time in years

In this scenario:

• \( P = 10,000 \)
• \( r = 4.75% = 0.0475 \)
• \( t = 13 \)

Now plug these values into the formula:

\[ I = 10,000 \times 0.0475 \times 13 \] \[ I = 10,000 \times 0.0475 \times 13 = 6,175 \]

The interest earned is $6,175.

To find the final amount in the account after 13 years, you can use the following formula:

\[ A = P + I \]

Where:

• \( A \) is the total amount in the account
• \( P \) is the principal amount
• \( I \) is the interest earned

Substituting the values:

\[ A = 10,000 + 6,175 = 16,175 \]

The final amount in the account after 13 years is $16,175.

Thus the answers to fill in are:

The accrued interest is $6,175 and the final amount in the account at the end of the 13 years is $16,175!