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)

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 = (P* r* t)/(100)`

`I=(50000* 3* 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.