The simple interest on an investment is directly proportional to the amount of the investment.By investing $6000 in a certain certificate of deposit,you obtained an interest payment of $276.00 after 1 year.Determine a mathematical model that gives the interest,I ,for this CD after 1 year in terms of the amount invested,P.
A) $I = ( 0.050 ) P$
B) $I = ( 0.041 ) P$
C) $I = ( 0.049 ) P$
D) $I = ( 0.046 ) P$
E) $I = ( 0.044 ) P$

Question

Quizplus · Accepted Answer

The interest rate can be calculated as $ \frac{276}{6000} = 0.046 $, so the model is $ I = (0.046)P $.

The Simple Interest on an Investment Is Directly Proportional to the Amount