Question

The simple interest formula is l=prt where l represents simple interest on an amount p for t years at a rate of r where r is expressed as a decimal. What is the amount of money p that will generate $40 in interest at a 10% interest rate over 5 years

Answer 1

Answer: $80

Step-by-step explanation:

Given : Interest amount : $T=\ 40$

The rate of interest : $r=10\%=0.1$

Time period : $t=5$ years

The simple interest formula is

$l=prt$, where l represents simple interest on an amount p for t years at a rate of r where r is expressed as a decimal.

Substitute all the values in the  formula , we get

$40=p(0.1)(5)\\\\\Rightarrow\ p=\dfrac{40}{0.1\times5}=80$

Hence, the amount of money p that will generate $40 in interest at a 10% interest rate over 5 years= $80

Answer 2

First solve for p.

$I=prt\Longrightarrow p=\dfrac{I}{rt}$

Then insert the data.

$p=\dfrac{40}{0.1\cdot5}=80$

Hope this helps.

r3t40