Question

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

Answer 1

$P=\frac{i}{rt}\\P=\frac{(20)}{(0.05)(5)}\\P=\frac{20}{.25}\\P=80$

Answer 2

80 is the answerrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr