Question

The simple interest formula is I = Prt, where I represents simple interest on an amount, P, for t years at a rate of r. The equation solved for P is P = .

What is the amount of money, P, that will generate $40 in interest at a 10% interest rate over 5 years?

a. $60
b. $80
c. $90
d.$100

Answer 1

b

Explanation:

Answer 2

remember that you can do anything to an equation as long as you do it to both sides

so
I=PRT
divide both sides by RT

`(I)/(RT)`=P

P=?
I=40
R=10%=0.1
T=5
plug it in

`(40)/((0.1)(5))`=P

`(40)/((0.5))`=P
80=P

answer is B, $80