William Jackson invests $56,500 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years

Accounting Nov 17, 2021

William Jackson invests $56,500 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, William withdraws the accumulated amount of money.

Compute the amount William would withdraw assuming the investment earns simple interest. (Round answers to 0 decimal places)

Expert Solution

Answer:

Total amount withdrawn = Principal amount +Interest earned

=56500+(56500*0.01*10 years)

=56500+(5650*10)

=$113000

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