The Simple Interest on an Investment Is Directly Proportional to the Amount

question 55

Multiple Choice

The simple interest on an investment is directly proportional to the amount of the investment. By investing $8750 in a certain certificate of deposit, you obtained an interest payment of $210.00 after 1 year. Determine a mathematical model that gives the interest, I, for this CD after 1 year in terms of the amount invested, P.

• A) \(I = ( 0.022 ) P\)
• B) \(I = ( 0.027 ) P\)
• C) \(I = ( 0.019 ) P\)
• D) \(I = ( 0.028 ) P\)
• E) \(I = ( 0.024 ) P\)