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 found by dividing the interest payment by the principal amount: $ \frac{276}{6000} = 0.046 $. Thus, the model is $ I = (0.046) P $.

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