Question

A savings account with simple interest can be modeled by which type of graph?

Answer 1

For simple interest, it could be represented by a straight line


`I=(P.r)*t`

Answer 2

The simple interest can be modeled by a linear function.

Explanation:

We know that,

The equation to find the simple interest is,
`I=Prt`,

where I = simple interest, P = Principle amount, r = rate of interest and t = amount of time.

Now, while calculating the simple interest, 'time is usually a variable term'.

So,
`I=Prt` implies
`I=kt`, where
`k=Pr` is a constant.

Thus, the equation
`I=kt` represents a linear function.

Hence, the simple interest can be modeled by a linear function.