Question

You invested $7,000 into a money market account for 10 years at an annual interest rate of 3%. How much is the accrued interest?

Answer 1

The total interest accrued is $2,407.41 if you invested $7,000 into a money market account for 10 years at an annual interest rate of 3%.

What is invested amount?

An investment is a payment made to acquire the securities of other firms with the intention of making a profit.

We are assuming the interest will be compounded annually

$\rm A = P(1+\dfrac{r}{n})^{nt}$

Where A = Final amount

          P = Principal amount

          r  = annual rate of interest

          n = how many times interest is compounded per year

          t = How long the money is deposited or borrowed (in years)

We have:

P = $7000

r = 3% = 0.03

t = 10 years

n = 1

$\rm A = 7000(1+\dfrac{0.03}{1})^{1\times10}$

After calculating:

A = $9407.41

I = A - P = 9407.41 - 7000 = $2,407.41

Thus, the total interest accrued is $2,407.41 if you invested $7,000 into a money market account for 10 years at an annual interest rate of 3%.

Learn more about the invested amount here:

brainly.com/question/16995381

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