Simple Interest Future Value Quiz
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Questions and Answers

What will be the value at the end of the 5th year if Birr 1,000 is invested at 12% simple interest for 5 years?

  • Birr 1,600
  • Birr 1,500
  • Birr 1,720 (correct)
  • Birr 1,600
  • What is the interest earned if Birr 1,000 is invested at 12% simple interest for 5 years?

  • Birr 600 (correct)
  • Birr 500
  • Birr 1,000
  • Birr 1,200
  • If the interest rate is increased to 15%, what will be the value at the end of the 5th year for Birr 1,000 invested at simple interest?

  • Birr 1,750 (correct)
  • Birr 1,800
  • Birr 1,500
  • Birr 1,650
  • What is the present value of the benefits of Birr 1,000 annually for three years at a 10% discount rate?

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