Question

How much accumulated interest should the investor expect at the end of 10 years?

Answer 1

The correct option is D

The accumulated interest after 10 years is $2,125.00

Step-by-step explanation:

We have the following parameters:

Principal (P) = $2,500

Rate (R) = 8.5%

Time (T) = 10 years

To calculate the interest after 10 years, we use the formula:

`A=(PRT)/(100)`

`\begin{gathered} A=(2500*8.5*10)/(100) \\ \\ =2125 \end{gathered}`

The interest is $2,125