Question

A company invests 50000 in a savings account that pays 3% interest per year. Write a direct proportion equation that relates interests and years

Answer 1

Answer: I = 1500 t

Where, I = interest, t = time(in years)

Step-by-step explanation:

Here, the principal amount, P = 50000,

Annual rate of interest, r = 3 %

Let the total interest after t years is I,

So, by the simple interest formula,

$I = \frac{P\times r\times t}{100}$

$I=\frac{50000\times 3\times t}{100}$

$I=1500t$

Since, In the above equation,

The interest and time are directly proportional to each other,

Hence, the above equation is the direct proportion equation that relates interests and years.