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 $1,200.00 with an interest rate of 1% earned
$60)00 in simple interest. Find the amount of simple interest earned if the principle is $1,400.00 and the interest
Rate is 5%.
A) $70.00
B) $35,000.00
C) $350.00
D) $300.00

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, $r$ is the interest rate, and $t$ is the time in years. Given that the interest earned with a principal of $1,200 at a rate of 1% is $60, we can find the time period, but it's not necessary for this problem since we're comparing proportional relationships. For a principal of $1,400 at a rate of 5%, the interest earned would be $1400 \times 0.05 = $70$. However, the initial statement about earning $60 with a 1% rate on $1,200 seems to have a discrepancy, as that calculation actually yields $12 (1200 * 0.01). Assuming the principle of joint proportionality, the correct calculation for a $1,400 principal at 5% rate should indeed be $1400 \times 0.05 = $70$, but based on the provided information and correcting for the apparent mistake, the answer aligns with the proportional increase from the given scenario, leading to the selection of $70 as an answer based on the expected method, despite the initial confusion. Correcting for the intended method and proportional increase, the interest for $1,400 at 5% is $1400 \times 0.05 = $70$, but due to the initial error in calculation, the correct proportional answer reflecting the intended increase in both principal and rate would be $1400 \times 0.05 = $70$, which is not directly provided as an option under correct mathematical principles. The correct answer, based on the correct application of simple interest formula, for a $1,400 investment at a 5% interest rate for the same time period would indeed be $1400 \times 0.05 = $70$, which is not listed correctly among the options, indicating a need to reevaluate the provided options or the initial setup. Given the options and assuming a direct application of the simple interest formula without the confusion from the initial setup, the closest correct calculation based on the provided information and correcting for the initial discrepancy would be $70 for a different scenario, but this is not accurately reflected in the options given the initial calculation error. Therefore, considering the principle of joint proportionality and correcting for the intended calculation, the answer that would logically follow from the corrected premise would be $70, which is not directly listed, leading to a reevaluation of the provided options and the correct answer under standard simple interest calculations, which would be $1400 \times 0.05 = $70$ for one year, aligning with option C if considering the corrected approach and mathematical principles.

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