The amount of simple interest earned I, on an investment over a fixed amount of time?, is jointly proportional to the principle invested P, and the interest rate?. A principle investment of $1500.00 with an interest rate of 5% earned $375.00 in simple interest. Find the amount of simple interest earned if the principle is $2300.00 and the interest rate is 8%?

Question

Mathematics

Jennings

26 November, 08:34

The amount of simple interest earned I, on an investment over a fixed amount of time?, is jointly proportional to the principle invested P, and the interest rate?. A principle investment of $1500.00 with an interest rate of 5% earned $375.00 in simple interest. Find the amount of simple interest earned if the principle is $2300.00 and the interest rate is 8%?

+4

Answers (1)

Know the Answer?

Ty Bowman · Answer 1

Answer:$920

Step-by-step explanation:

Since the variation is joint, I=KPr where k is the constant of proportionality.

Plugging in the values of I=$375, P=$1500 and r=5% in the equation I=KPr, the value of k can be calculated. Hence, the formula connecting the three quantities (I, P and r) can be generated.

375 = K (1500*5)

Making k the subject of change,

K = 375 / (1500*5)

K=1/20

Formula connecting the three quantities : I = Pr/20

when P=$2300, r=8%,

I = (2300*8) / 20

I = $920