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

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

A) $\$ 5,000 ; \$ 2,800$
B) $\$ 5,000 ; \$ 27,400$
C) $\$ 5,000 ; \$ 7,800$
D) $\$ 19,600 ; \$ 22,400$
E) $\$ 196.00 ; \$ 2,996.00$

Question

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

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

A) $\$ 5,000 ; \$ 2,800$ 
B) $\$ 5,000 ; \$ 27,400$ 
C) $\$ 5,000 ; \$ 7,800$ 
D) $\$ 19,600 ; \$ 22,400$ 
E) $\$ 196.00 ; \$ 2,996.00$

Quizplus · Accepted Answer

To find the future value, we use the formula: 
Future Value = Principal + (Principal * Rate * Time)

For option A, there is not enough information to calculate the future value. 
For option B, the rate must be very high to get such a large future value, which is unlikely for a simple interest problem. 
For option D, the interest earned is less than the initial principal, which is not possible for a simple interest problem. 
For option E, the interest rate is extremely high, which is unlikely for a simple interest problem.

Therefore, the best choice is option C. The interest earned is reasonable for a simple interest problem, and the future value can be calculated using the given information:
Future Value = $5000 + ($5000 * 0.031 * 3) = $7,800.

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