Accrued interest can be calculated using the formula:
Accrued interest = Principal × (Interest rate/100) × Time
Using the given values:
Principal = $10,000
Interest rate = 4.75%
Time = 13 years
Accrued interest = 10,000 × (4.75/100) × 13
= $6,175
The final amount can be calculated by adding the accrued interest to the principal:
Final amount = Principal + Accrued interest
= 10,000 + 6,175
= $16,175
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 )
7 answers
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 (point ) The accrued interest is $_____ and the final amount of the investment is $_____.
The accrued interest is $6,175 and the final amount of the investment is $16,175.
Chris invests $15,000 in a retirement account with an annual interest rate of 3.4%. Find the final amount of the investment after 27 years if interest is compounded quarterly Round the answer to the nearest cent . (1 point) The final amount of the investment after 27 years is $______.
To find the final amount of the investment after 27 years with quarterly compounding, we will use the formula for compound interest:
Final amount = Principal × (1 + (Interest rate/Number of periods))^Number of periods × Time
Using the given values:
Principal = $15,000
Interest rate = 3.4% = 0.034 (decimal form)
Number of periods = 4 (quarterly compounding per year)
Time = 27 years
Final amount = 15,000 × (1 + (0.034/4))^(4 × 27)
≈ $38,563.75
Therefore, the final amount of the investment after 27 years with quarterly compounding is approximately $38,563.75.
Final amount = Principal × (1 + (Interest rate/Number of periods))^Number of periods × Time
Using the given values:
Principal = $15,000
Interest rate = 3.4% = 0.034 (decimal form)
Number of periods = 4 (quarterly compounding per year)
Time = 27 years
Final amount = 15,000 × (1 + (0.034/4))^(4 × 27)
≈ $38,563.75
Therefore, the final amount of the investment after 27 years with quarterly compounding is approximately $38,563.75.
When Martin was born, his father set up a $5,000 college fund for him with an annual compound interest rate of 7.3%. What is the final amount of this college fund, and how much interest is gained if this fund is invested for 18 years if interest is compounded monthly? Round the answers to two decimal places as needed. (1 point) The final amount of the college fund is $______, and the amount of interest gained is $_____.
To find the final amount of the college fund after 18 years with monthly compounding, we will use the formula for compound interest:
Final amount = Principal × (1 + (Interest rate/Number of periods))^Number of periods × Time
Using the given values:
Principal = $5,000
Interest rate = 7.3% = 0.073 (decimal form)
Number of periods = 12 (monthly compounding per year)
Time = 18 years
Final amount = 5,000 × (1 + (0.073/12))^(12 × 18)
≈ $14,703.12
Therefore, the final amount of the college fund after 18 years with monthly compounding is approximately $14,703.12.
To find the amount of interest gained, we subtract the principal from the final amount:
Interest gained = Final amount - Principal
= 14,703.12 - 5,000
≈ $9,703.12
Therefore, the amount of interest gained is approximately $9,703.12.
Final amount = Principal × (1 + (Interest rate/Number of periods))^Number of periods × Time
Using the given values:
Principal = $5,000
Interest rate = 7.3% = 0.073 (decimal form)
Number of periods = 12 (monthly compounding per year)
Time = 18 years
Final amount = 5,000 × (1 + (0.073/12))^(12 × 18)
≈ $14,703.12
Therefore, the final amount of the college fund after 18 years with monthly compounding is approximately $14,703.12.
To find the amount of interest gained, we subtract the principal from the final amount:
Interest gained = Final amount - Principal
= 14,703.12 - 5,000
≈ $9,703.12
Therefore, the amount of interest gained is approximately $9,703.12.
11 answers