Solve.
-The amount of simple interest earned on an investment over a fixed amount of time is jointly proportional to the principle invested and the interest rate. A principle investment of $2400.00 with an interest rate of 1% earned
$120.00 in simple interest. Find the amount of simple interest earned if the principle is $1600.00 and the interest
Rate is 8%.
A) $640.00
B) $64,000.00
C) $960.00
D) $80.00

Question

Quizplus · Accepted Answer

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest earned, $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time in years. Given that the interest earned with a principal of $2400 at a rate of 1% is $120, we can find the time period, but it's not necessary because the interest is directly proportional to both the principal and the rate. For a principal of $1600 at a rate of 8%, the interest earned would be $\frac{1600}{2400} \times \frac{8}{1} \times 120 = \frac{2}{3} \times 8 \times 120 = \frac{16}{3} \times 120 = 5 \times 120 = $640$.

Solve. -The Amount of Simple Interest Earned on an Investment Over