Problem
Suppose you're offered the following three accounts to invest S10,000 for 20 years: $15 \%$ simple Interest, $6 \%$ interest compounded monthly, and an annulty with quarterly payments of $\$ 125$ at $14 \%$ interest compounded quarterly. Which is the best choice? Round your answers to the nearest cent. Part: 0 / 4 Part 1 of 4 The future value of $\$ 10,000$ using $15 \%$ simple interest is $\mathrm{S}$
Solution
Step 1 ：For the simple interest rate, the interest would be $10000 \cdot 0.15=1500$ dollars every year. Since there are $20$ years, in the end the future value would be $10000+20\cdot 1500=40000$ dollars.
Step 2 ：The future value of $\$ 10,000$ using $15 \%$ simple interest is $\boxed{40000}$ dollars.
