Solve the 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 $3100.00 with an interest rate of 2% earned
$186.00 in simple interest. Find the amount of simple interest earned if the principle is $2700.00 and the interest
Rate is 7%.
A) $56,700.00
B) $651.00
C) $567.00
D) $162.00

Question

Quizplus · Accepted Answer

Let P be the principle investment and R be the interest rate.
From the first statement, we have:
I = kPR
where I is the amount of simple interest earned and k is the proportionality constant.
We can solve for k by using the information given for the first investment:
186 = k(3100)(0.02)
k = 0.3
Now, we can use this value of k to find the amount of simple interest earned for the second investment:
I = (0.3)(2700)(0.07)
I = $567.00 (rounded to the nearest cent) Let x be the amount of simple interest earned if the principle is $2700.00 and the interest rate is 7%. 
According to the problem, we have:

186 = k * 3100 * 2%

where k is the constant of proportionality. Solving for k, we get:

k = 186 / (3100 * 0.02) = 3

So the formula for the amount of simple interest earned is:

I = 3 * P * r

where I is the simple interest earned, P is the principle, and r is the interest rate.

Plugging in P = 2700 and r = 7%, we get:

I = 3 * 2700 * 0.07 = 567

Therefore, the amount of simple interest earned is $567.00, which corresponds to choice C.

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