Here are the essential concepts you must grasp in order to answer the question correctly.
Simple Interest Formula
The simple interest formula is given by I = PRT, where I is the interest earned, P is the principal amount, R is the rate of interest per year, and T is the time in years. This formula allows us to calculate the interest earned on an investment over a specified period, making it essential for solving problems related to simple interest.
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Joint Variation
Joint variation occurs when a quantity varies directly with two or more other quantities. In the context of simple interest, it means that interest earned varies jointly with the principal amount and the time the money is invested. Understanding this concept helps in establishing relationships between different variables in the problem.
Proportional Relationships
Proportional relationships indicate that two quantities maintain a constant ratio. In this problem, the interest earned from different principal amounts and time periods can be compared using ratios. Recognizing these relationships is crucial for scaling the interest earned from one scenario to another, allowing for the calculation of interest for different investments.
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