The value of $500 received after eight years is $338.42. at a simple interest rate of 5 percent.
Simple interest is a quick and smooth method of calculating the hobby charge on a mortgage. simple interest is decided by using multiplying the everyday hobby rate through the foremost via the wide variety of days that elapse between payments.
simple interest is the technique of calculating the hobby quantity for a particular important amount of money at some price of interest. a simple hobby is a brief and easy method of calculating the interest price on a loan. simple interest is decided via multiplying the everyday hobby charge with the aid of the fundamental through the number of days that elapse between payments.
= 500/(1.05)⁸
= 500/1.477= 338.524
Hence, The value of $500 received after eight years is $338.42.
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