The simple interest on an investment is directly proportional to the amount of the investment.By investing $2400 in a certain bond issue,you obtained an interest payment of $111.75 after 1 year.Find a mathematical model that gives the interest I for this bond issue after 1 year in terms of the amount invested P.(Round your answer to three decimal places. )
A) $I = 0.047 P$
B) $I = 268,200 P$
C) $I = 21.477 P$
D) $I = 2400 P$
E) $I = 111.75 P$

Question

The simple interest on an investment is directly proportional to the amount of the investment.By investing $2400 in a certain bond issue,you obtained an interest payment of $111.75 after 1 year.Find a mathematical model that gives the interest I for this bond issue after 1 year in terms of the amount invested P.(Round your answer to three decimal places. ) ​
A) $I = 0.047 P$
B) $I = 268,200 P$
C) $I = 21.477 P$
D) $I = 2400 P$
E) $I = 111.75 P$

Quizplus · Accepted Answer

The Answer is A

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