The interest on an investment varies directly as the rate of interest. if the interest is $41 when the interest rate is 4%, find the interest when the rate is 7%.

$ 71.75

Step-by-step explanation:

Suppose r represents the interest rate and I represents the amount of interest,

∵ the interest on an investment varies directly as the rate of interest,

i.e. I ∝ r

⇒ I = kr

Where,

k = constant of variation,

If I = 41, r = 4% = 0.04,

Thus, the equation that shows the relation between I and r is,

I = 1025 r

If r = 7% = 0.07,

Thus, the interest would be,

I = 1025 × 0.07 = $ 71.75

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