Question

The amount of interest earned on a savings account varies directly with the amount of money saved. If $126 in interest is earned on $3,000 of savings, how much interest will be earned on $5,000 of savings over the same time period? a.$168

b. $231
c.$210
d. $189

Answer 1

First we calculate the interest, which is $126/3000 = 0.042 or 4.2%

Then apply this same percentage to the $5000 to determine interest that would have been earned.

5000 x 0.042 = 210

So the answer is C.