What is the future value of $500 invested for 4 years at a simple interest rate of 5% p.a.?
A)$525
B)$575
C)$550
D)$600

Question

Quizplus · Accepted Answer

The future value of a simple interest investment can be calculated by the formula: FV = P(1+r*t), where P is the principal amount, r is the interest rate and t is the time period. 
Here, P = $500, r = 5% and t = 4 years. 
So, FV = 500(1+0.05*4) = $600. 
Therefore, the correct answer is D, $600.

What Is the Future Value of $500 Invested for 4