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OpenStudy (anonymous):
The interest on an investment varies directly as the rate of interest. If the interest is $46 when the interest rate is 5%, find the interest, in dollars, when the rate is 7.4%. Round to the nearest cent.
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hero (hero):
Hint: y = cx, where c is the constant of variation
hero (hero):
46 = c(.05) 46/.05 = c
hero (hero):
c = 920 y = 920(.074) y =68.08 Therefore, when the rate is 7.4%, the interest is $68.08
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