Final answer:
Using the simple interest formula, after 22 years Bill will have a total of $23,247.99 in his account from an initial investment of $11,986 at a 4.26% annual interest rate.
Step-by-step explanation:
To calculate the total money Bill will have in his account after 22 years from a simple interest investment, we can use the simple interest formula:
I = Prt
where:
- I is the interest,
- P is the principal amount ($11,986),
- r is the annual interest rate (4.26%),
- t is the time in years (22).
Firstly, convert the annual interest rate from a percentage to a decimal:
r = 4.26/100 = 0.0426
Now calculate the interest earned over 22 years:
I = 11986 × 0.0426 × 22
I = $11,261.99
To find the total money accumulated, add the interest to the principal:
Total = P + I
Total = $11,986 + $11,261.99
Total = $23,247.99
Therefore, after 22 years, Bill will have $23,247.99 in his account.