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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?

A) $21,250.00
B) $2,125.00
C) $212.50
D) $21.25

Respuesta :

Answer: Option 'B' is correct.

Step-by-step explanation:

Since we have given that

Principal amount (P)= $2500

Rate of simple annual interest (R) = 8.5%

Number of years (T)= 10

As we know the formula for "Simple Interest ":

[tex]Interest=\frac{P\times R\times T}{100}\\\\Interest=\frac{2500\times 8.5\times 10}{100}\\\\Interest=\$2125.00[/tex]

Hence, Option 'B' is correct.

toomuchdog9

Answer:

B is the correct answer

Step-by-step explanation:

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