Determine the accrued interest amount of a $5,000 student loan with a simple interest rate of 5.4% over a period of 8 years. Round the answer to two decimal places as needed.

Question

The accrued interest amount is $___

Answer 1

The formula to calculate accrued interest is:

Accrued Interest = Principal x Rate x Time

Given:
Principal (P) = $5,000
Rate (r) = 5.4% = 0.054
Time (t) = 8 years

Using the formula:
Accrued Interest = $5,000 x 0.054 x 8
Accrued Interest = $2160

Therefore, the accrued interest amount is $2,160.

Answer 2

To prepare for retirement, Chris invests $15,000 with a simple interest rate of 4.8%. Find the final amount of Chris’s investment if he invests this amount for the next 30 years. Round the answer to two decimal places as needed.
The final amount of Chris’s investment is $____

Answer 3

To calculate the final amount of Chris's investment, we can use the formula for simple interest:

Final Amount = Principal + (Principal x Rate x Time)

Given:
Principal (P) = $15,000
Rate (r) = 4.8% = 0.048
Time (t) = 30 years

Using the formula:
Final Amount = $15,000 + ($15,000 x 0.048 x 30)
Final Amount = $15,000 + $21,600
Final Amount = $36,600

Therefore, the final amount of Chris's investment is $36,600.

Answer 4

Anne invests $7,000 into a retirement account with a compound interest rate of 3.3% compounded quarterly. What is Anne’s final amount after 25 years of investment? Round the answer to the nearest cent.
Anne’s final amount after 25 years of investment is $___

Answer 5

To calculate the final amount using compound interest, we can use the formula:

Final Amount = Principal x (1 + Rate/Compounding Period)^(Compounding Period x Time)

Given:
Principal (P) = $7,000
Rate (r) = 3.3% = 0.033
Compounding Period (n) = 4 (quarterly compounding)
Time (t) = 25 years

Using the formula:
Final Amount = $7,000 x (1 + 0.033/4)^(4 x 25)
Final Amount = $7,000 x (1 + 0.00825)^100
Final Amount ≈ $7,000 x (1.00825)^100
Final Amount ≈ $7,000 x 1.34986
Final Amount ≈ $9,449.02

Therefore, Anne's final amount after 25 years of investment is approximately $9,449.02.

Answer 6

Wrong try again

Answer 7

Apologies for the mistake. Let's calculate the correct final amount using the correct formula for compound interest:

Final Amount = Principal x (1 + Rate/Compounding Period)^(Compounding Period x Time)

Given:
Principal (P) = $7,000
Rate (r) = 3.3% = 0.033
Compounding Period (n) = 4 (quarterly compounding)
Time (t) = 25 years

Using the formula:
Final Amount = $7,000 x (1 + 0.033/4)^(4 x 25)
Final Amount = $7,000 x (1 + 0.00825)^100
Final Amount = $7,000 x (1.00825)^100
Final Amount ≈ $7,000 x 1.346856
Final Amount ≈ $9,428.99

Therefore, Anne's final amount after 25 years of investment is approximately $9,428.99.