Re: An investment of d dollars at k percent simple annual interest yields
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14 Dec 2022, 05:14
Simple interest = principal * interest rate * time, where "principal" is the starting amount and "rate" is the interest rate at which the money grows per a given period of time (note: express the rate as a decimal in the formula). Time must be expressed in the same units used for time in the Rate.
An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period --> d∗k100∗2=600 --> k=30,000d
What (x) dollar amount invested at the same rate will yield $2,400 over a 3 year period --> x∗k100∗3=2,400 --> x∗30,000100d∗3=2,400 --> x=8d3.
Answer: E.
Or another way: In order interest to be 4 times more in 1.5 times longer time period then investment must be 4d/1.5=8d/3.
Answer: E.