Question

The simple interest on an investment is directly proportional to the amount of the investment. By investing $4250 in a certain bond issue, you obtained an interest payment of $106.25 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.

I=

Answer 1

I = kA
when A = 4250, then I = 106.25
106.25 = k(4250)
k = 106.25/4250 = .025

I = .025A

Answer 2

thank you :)

Answer 3

45%