Solve the variation problem.
-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 $1400.00 with an interest rate of 2% earned $140.00 in simple interest. Find the amount of simple interest earned if the principle is $3500.00 and the interest rate is 7%.
A)$490.00
B)$350.00
C)$122,500.00
D)$1225.00

Question

Quizplus · Accepted Answer

The simple interest is calculated using the formula I = P * r * t, where I is the interest, P is the principal, r is the rate, and t is the time. Given that $140 is earned from $1400 at 2%, we can find the constant of proportionality. Then, using the new principal $3500 and rate 7%, we calculate the interest as $1225.00.

Solve the Variation Problem