What is the future value of $124.49 after earning simple interest for five years at an annual rate of 10%?
A) $162.25
B) $186.74
C) $200.49
D) $136.94
E) $175.00

Question

Quizplus · Accepted Answer

Step 1 - Calculate the amount of interest to be received in one year.$124.49 × .10 = $12.449.
Step 2 - Multiply the interest times the number of periods; then add that back to the principal.$12.449 × 5 = $62.245. $62.245 + 124.49 = $186.74

What Is the Future Value of $124