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

question 23

Multiple Choice

The simple interest on an investment is directly proportional to the amount of the investment.By investing $2400 in a certain bond issue,you obtained an interest payment of $111.75 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.(Round your answer to three decimal places. ) ​

• A) \(I = 0.047 P\)
• B) \(I = 268,200 P\)
• C) \(I = 21.477 P\)
• D) \(I = 2400 P\)
• E) \(I = 111.75 P\)

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Definitions:

Prime Costs

The direct costs directly attributable to the manufacture of goods, including direct materials and direct labor.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert materials into finished goods.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including costs related to direct materials, direct labor, and manufacturing overhead.

Total Factory Overhead Cost

Total factory overhead cost includes all indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor, that are not directly tied to the production of specific goods.