an investor puts $4,500 into a life insurance...
an investor puts $4,500 into a life insurance policy that pays 8.0% simple annual interest. if no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 8 years?
Answer
# Explanation:
## Step1: Identify simple - interest formula
The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.
## Step2: Convert the interest rate to decimal
The annual interest rate $r = 8.0\%=0.08$. The principal amount $P = 4500$ and the time $t = 8$ years.
## Step3: Substitute values into the formula
$I=Prt=4500\times0.08\times8$.
First, $4500\times0.08 = 360$. Then, $360\times8=2880$.
# Answer:
$2880$