Fill in the table, assuming simple interest. $\text { cellpadding }=0 \text { " cellspacing }=" 0 \text { " width }=69 \% \text { " border="1" }$

$\begin{array}{ccccc}
I & P & r & t & \text { Future } \
\text { Interest } & \text { Principal } & \text { Rate } & \text { Time } & \text { Value }
\end{array}$

A) $12 \%$ ; $\$ 896$
B) $0.12 \%$ ; $\$ 896$
C) $12 \%$ ; $\$ 1,280$
D) $6 \%$ ; $\$ 1,280$
E) $0.12 \%$ ; $\$ 1,280$

Question

Fill in the table, assuming simple interest. $\text { cellpadding }=0 \text { " cellspacing }=" 0 \text { " width }=69 \% \text { " border="1"> }$

$\begin{array}{ccccc}
I & P & r & t & \text { Future } \
\text { Interest } & \text { Principal } & \text { Rate } & \text { Time } & \text { Value }
\end{array}$

A) $12 \%$ ; $\$ 896$ 
B) $0.12 \%$ ; $\$ 896$ 
C) $12 \%$ ; $\$ 1,280$ 
D) $6 \%$ ; $\$ 1,280$ 
E) $0.12 \%$ ; $\$ 1,280$

Quizplus · Accepted Answer

Using the formula for simple interest:
I = P*r*t
We can solve for the future value by adding the interest to the principal:
Future Value = Principal + Interest
For choice A:
I = 0.12*896*1 = $107.52
Future Value = $896 + $107.52 = $1,003.52
For choice B:
I = 0.0012*896*1 = $1.08
Future Value = $896 + $1.08 = $897.08
For choice C:
I = 0.12*1280*1 = $153.60
Future Value = $1,280 + $153.60 = $1,433.60
For choice D:
I = 0.06*1280*1 = $76.80
Future Value = $1,280 + $76.80 = $1,356.80
For choice E:
I = 0.0012*1280*1 = $1.54
Future Value = $1,280 + $1.54 = $1,281.54
Therefore, the best choice is C with a future value of $1,433.60.

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