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?

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22 October, 06:50

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Genevieve Clark · Answer 1

P=I/RT

P=20 / (0.05*5)

P=20 / (0.25)

P=80

it is $80