The formula for simple interest is:
I = P*R*T
Where:
I = Interest earned
P = Principal amount (initial investment)
R = Interest rate
T = Time period
Plugging in the given values, we get:
I = 4,500 * 0.08 * 8
I = $2,880
Therefore, the investor should expect $2,880 in accumulated interest at the end of 8 years.
An investor puts $4,500 into a life insurance policy that pays 8.0% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 8 years?
1 answer
1 answer