gonzalezkg41
Answered

Tahmar knows the formula for simple interest is I = Prt, where I represents the simple interest on an amount of money, P, for t years at r rate. She transforms the equation to isolate P : P = . Using this formula, what is the amount of money, P, that will generate $20 at a 5% interest rate over 5 years?

Verified Answer :

Ckaranja

 $80

Working
Making p the subject gives:
P=\(\frac{I}{rT}\)
Substituting for values of I, r and t
p= \(\frac{20}{0.05*5}\)
p=80 dollars

Db77

Answer: 80

Step-by-step explanation: The given formula is: P = I/rt. So, we'll plug in $20, 5%, and 5 years like this: P = 20/5%(5) (or for the 5%, you can put .05), you will get: 80. You can get that answer on your calculator as well.

Hope this helped :)

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