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Question
Write whether the following statement vary directly, vary inversely with each other, or neither of the two.
Simple interest on a given sum and the rate of interest.
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Solution
Simple interest on a given sum and the rate of interest are directly proportional to each other.
E.g. Let P = Rs 1000, R = 10% and T = 1 yr
∴ `SI = (P xx R xx T)/100`
= `(1000 xx 10 xx 1)/100`
= Rs 100
But if P = Rs 1000, R = 20% and T = 1yr
∴ `SI = (P xx R xx T)/100`
= `(1000 xx 20 xx 1)/100`
= Rs 200
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