Question

find the future value of 10000 for 5 years if the annual interest rate is 8 percent. what would be the future value if the interest rate is a simple interest rate?​

Answer 1

To find the simple interest, we multiply $10000 × 0.08 × 5 to get that: $4000 is the interest gained after 5 years.

The final capital or future value would be $14.000.