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Does anyone know how to solve this equation?

Does anyone know how to solve this equation?-example-1

1 Answer

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9514 1404 393

Answer:

$80

Explanation:

You are given the formula ...

P = I/(rt)

and the values I = 20, r = 0.05, t = 5.

Put the numbers in place of the corresponding variables and do the arithmetic.

P = 20/(0.05·5) = 20/0.25 = 80

The amount $80 will generate $20 in interest over 5 years at 5% per year.

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