When simple interest is used, the accumulated amount is a linear function of time.

True

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False

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Solution

The correct option is A
True

TRUE: In this case the simple interest accumulation function a(t) is assumed linear and is of the form:a(t) = 1 + st with s the simple interest rate and t the time. And the relationship between the amount and the accumulation function is linear : Ak(t) = accumulated amount function = Ka(t) = K(1 + st)

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