Question

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

Answer 1

Answer: I just took the test so the answer would be $2,125.00

Step-by-step explanation: hope this helped thx for the points :D

Answer 2

$2125 interest accumulated at the end of 10 years .

Explanation:

Formula

`Simple\ inerest = (Principle* Rate* Time)/(100)`

As given

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest.

Principle = $2500

Rate = 8.5 %

Time = 10 years

Putting all the values in the formula

`Simple\ inerest = (2500* 8.5* 10)/(100)`

`Simple\ inerest = 25* 8.5* 10`

Simple interest = $ 2125

Therefore the $2125 interest accumulated at the end of 10 years .