Question

The total amount A in an account earning simple interest is given by the equation A = P + Prt, where P is the principal, r is the rate as a decimal, and t is time in years.
Holly earns 4% simple interest over 5 years.

Which equation represents the amount in Holly's account in terms of the principal?

Answer 1

Answer:A=P+0.2P

Step-by-step explanation:

Answer 2

$p\%=\dfrac{p}{100}\\\\4\%=\dfrac{4}{100}=0.04\\\\A=P+Prt\\\\r=4\%=0.04\\\\t=5\\\\\text{substitute}\\\\A=P+(P)(0.04)(5)=P+0.2P\\\\Answer:\ A=P+0.2P$