The amount of interest earned on an investment is directly proportional to the amount of money invested. If 200, 000 pesos earns 15, 000 in a month, how much will a 150, 000 peso investment on the same venture earn in a year?
15/200 = x/150
or, since 150 is 3/4 of 200, it will earn 3/4 as much interest.
watch out for the time intervals...
To solve this problem, we need to use the concept of direct proportionality.
In this case, we know that the amount of interest earned is directly proportional to the amount of money invested. This means that as the amount of money invested increases, the amount of interest earned will also increase, and similarly, as the amount of money invested decreases, the amount of interest earned will decrease proportionally.
Let's use the given information to create a proportion:
We are given:
Investment amount 1: 200,000 pesos
Interest earned 1: 15,000 pesos in 1 month
So we have:
200,000 pesos invested -> 15,000 pesos earned in 1 month
Now, we can set up a proportion to find the interest earned for a 150,000 peso investment in 12 months (1 year):
200,000 pesos / 15,000 pesos = 150,000 pesos / x pesos
To solve for x, we can cross-multiply and divide:
(200,000 pesos) * x pesos = (15,000 pesos) * (150,000 pesos)
200,000x = 2,250,000,000
Dividing both sides by 200,000:
x = 2,250,000,000 / 200,000
x = 11,250 pesos
Therefore, a 150,000 peso investment on the same venture will earn 11,250 pesos in a year.