Question

Tahmar knows the formula for simple interest is l=prt where I represent the simple interest on an amount of money p for t years at r rate she transforms the equation to isloate p : p using this formula what is the amount of money p that will generate $20 at a 5% interest rate over 5 years

Answer 1

$80

Explanation:

The formula for p is ...

p = I/(rt)

Filling in the given values, we get ...

p = $20/(0.05·5) = $80

The amount that will generate the desired interest is $80.