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 answers to two decimal places as needed.(1 point)

Question

The accrued interest is $__
and the final amount of the investment is $__
.

Answer 1

The formula for calculating simple interest is:

Interest = Principal x Rate x Time

Given:
Principal = $10,000
Rate = 4.75%
Time = 13 years

Accrued Interest = Principal x Rate x Time
Accrued Interest = $10,000 x 0.0475 x 13
Accrued Interest = $4,175

Final amount of the investment = Principal + Accrued Interest
Final amount of the investment = $10,000 + $4,175
Final amount of the investment = $14,175

Therefore, the accrued interest is $4,175 and the final amount of the investment is $14,175.