Question

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 = i/pie . Using this formula, what is the amount of money, P, that will generate $20 at a 5% interest rate over 5 years?

Answer 1

The formula to find the amount of money (p) is
P=I/rt
P the amount of money ?
I simple interest 20
R interest rate 0.05
T time 5years
So
P=20÷(0.05×5)
P=80

Hope it helps!

Answer 2

r= 5% = 0.05

t = 5 years

I= 20

P=20÷(0.05×5)
P=$80