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

User Nouse
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1 Answer

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P=I/RT
P=20/(0.05*5)
P=20/(0.25)
P=80

it is $80
User Rahul Ahuja
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