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

question 29

Multiple Choice

The simple interest on an investment is directly proportional to the amount of the investment. By investing $7750 in a certain certificate of deposit, you obtained an interest payment of $201.50 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.

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Definitions:

Gratuitous Bailment

A bailment for the sole benefit of either the bailor or the bailee, in which the other party receives no consideration for benefits bestowed.

Liable

Legally responsible.

Damages

Money recovered by a party in a court action to compensate that party for injury or loss.

Ancestors

Immediate family members from previous generations, such as parents, grandparents, and great-grandparents.