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 $4000.00 with An interest rate of 3% earned $240.00 in simple interest. Find the amount of simple interest earned if The principle is $2400.00 and the interest rate is 1%.
A) $48.00
B) $144.00
C) $80.00
D) $4800.00

Question

Quizplus · Accepted Answer

The formula for simple interest is I = PRT, where I is the interest earned, P is the principal amount, R is the interest rate, and T is the time in years. Given the first scenario, we can find T since $240 = $4000 * 3% * T, which gives us T = 2 years. Using the same formula for the second scenario with P = $2400, R = 1%, and T = 2 years, we find I = $2400 * 1% * 2 = $48.

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