Let x=interest,
4000:280 = P : x
converts into the equation
4000/280 = P / x
which when cross multiplied gives
4000x = 280P
divide both sides by 4000 to get:
x(interest) = (280/4000)P
=(7/100)P
or
=0.07P
the simple interest received from investment is directly proportional to the amount of the investment. By investing $4000 in a municipal bond you obtain interest of $280 at the end of 1year. Find a mathematical model that gives the interest I at end of 1year in terms of the amount P.
1 answer
1 answer