For a fixed rate and principal, the interest earned in a bank account paying simple interest varies directly with the length of time the principal is left on deposit. If an investment of $7,000 earns $700 in 2 years, how much will it earn in 8 years?
A) $2,700
B) $2,850
C) $2,750
D) $2,900
E) $2,800

Question

Quizplus · Accepted Answer

The interest earned is directly proportional to the time. Since $700 is earned in 2 years, in 8 years (which is 4 times longer), the interest will be 4 times $700, which equals $2,800.

For a Fixed Rate and Principal, the Interest Earned in a Bank