Question

SIMPLE INTEREST The simple interest on an investment is directly proportional to the amount of the investment. By investing $\$3250$ in a certain bond issue, you obtained an interest payment of $\$113.75$ 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 $P$.

Name: Problem 39, Chapter 1: Precalculus with Limits
Uploaded: 2019-12-21T20:54:11-08:00
Duration: 1 min 26 s
Channel: Jeremy Strong
Description: SIMPLE INTEREST The simple interest on an investment is directly proportional to the amount of the investment. By investing 250 in a certain bond issue, you obtained an interest payment of 13.75 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.

   SIMPLE INTEREST     The simple interest on an investment is directly proportional to the amount of the investment. By investing $\$3250$ in a certain bond issue, you obtained an interest payment of $\$113.75$ 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 $P$.

Precalculus with Limits

Ron Larson 2nd Edition

Chapter 1, Problem 39

Instant Answer

Solved by Expert Jeremy Strong

12/21/2019

Step 1

This can be represented by the equation $I=kP$, where $I$ is the interest, $P$ is the principal amount (the initial investment), and $k$ is the constant of variation. Show more…

Show all steps

Thanks for your feedback!

SIMPLE INTEREST The simple interest on an investment is directly proportional to the amount of the investment. By investing $\$3250$ in a certain bond issue, you obtained an interest payment of $\$113.75$ 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 $P$.