Solve the Variation Problem

question 197

Multiple Choice

Solve the variation 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 $1400.00 with an interest rate of 2% earned $140.00 in simple interest. Find the amount of simple interest earned if the principle is $3500.00 and the interest rate is 7%.

• A)$490.00
• B)$350.00
• C)$122,500.00
• D)$1225.00

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Definitions:

Units

Basic quantities or measures adopted to quantify and represent variables in quantitative analyses, such as units of measurement in physics or economic units in economics.

Profit-Maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.

Loss-Minimizing

A strategy aimed at reducing the negative impact or minimizing the losses in a business operation or an investment.

Quantity

The amount or number of a material or immaterial good or service.