The future value of a $20,000 investment at the end of 7 years,assuming 9% simple interest,is:
A)$ 36,560.00
B)$ 32,600.00
C)$ 10,940.00
D)$184,008.00

Question

Quizplus · Accepted Answer

Using the formula for simple interest: 
FV = P*(1+r*t)
where FV is the future value, P is the principal (initial investment), r is the interest rate, and t is time in years

Plugging in the values: 
FV = 20,000*(1+0.09*7) 
FV = $32,600

Therefore, the best choice is B.

The Future Value of a $20,000 Investment at the End