Investor puts $3000 into a life insurance policy that pays 7.5% simple annual interest. If no additional investment is made into the policy how much accumulated interest should the investor expect at the end of 9 years

Answer 1

To calculate the accumulated interest, we can use the formula:

I = P * r * t

Where:
I = accumulated interest
P = initial investment
r = interest rate (in decimal form)
t = time (in years)

Given:
P = $3000
r = 7.5% = 0.075 (in decimal form)
t = 9 years

Plugging in these values into the formula, we get:

I = $3000 * 0.075 * 9

I = $2025

Therefore, the investor should expect an accumulated interest of $2025 at the end of 9 years.