Find the simple interest on a $3,000 investment made for 10 years at an interest rate of 5% per year. What is the future value ?
A)The simple interest is $1,520, the future value is $4,520.
B) The simple interest is $1,520, the future value is $4,480.
C) The simple interest is $1,500, the future value is $4,500.
D) The simple interest is $1,530, the future value is $4,530.
E) The simple interest is $1,490, the future value is $4,520.

Question

Find the simple interest on a $3,000 investment made for 10 years at an interest rate of 5% per year. What is the future value  ?
A)The simple interest is $1,520, the future value is $4,520.
B) The simple interest is $1,520, the future value is $4,480.
C) The simple interest is $1,500, the future value is $4,500.
D) The simple interest is $1,530, the future value is $4,530.
E) The simple interest is $1,490, the future value is $4,520.

Quizplus · Accepted Answer

Simple interest is calculated as principal * rate * time = $3,000 * 0.05 * 10 = $1,500. The future value is the principal plus the interest, which is $3,000 + $1,500 = $4,500.

Find the Simple Interest on a $3,000 Investment Made for 10