Kevin earned $165 interest for 1 year on an investment of $1500. At the same rate, what amount of interest would be earned by an investment of $2500?
At the same rate of interest, and period, the interest earned will be proprtional to the original principle. Therefore, you can multiply $165 by 2500/1500 (or 5/3) to get the answer.
To find the amount of interest earned by an investment of $2500 at the same rate, you can use the proportion:
Interest1/Principal1 = Interest2/Principal2
Let's assign the values:
Interest1 = $165
Principal1 = $1500
Principal2 = $2500
Using the proportion, we have:
$165/$1500 = Interest2/$2500
To find Interest2, we can cross-multiply:
$165 * $2500 = $1500 * Interest2
Now, solve for Interest2:
$165 * $2500 = $1500 * Interest2
Interest2 = ($165 * $2500) / $1500
Interest2 = $412,500 / $1500
Interest2 = $275
Therefore, an investment of $2500 would earn $275 in interest at the same rate.