Question

The simple interest formula is I = Prt, where I 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?

$60
$80
$90
$100

Answer 1

Answer:

80

Step-by-step explanation:

I = Prt

I = 40  R = .10  T = 5

40 = P (.10)(5)

40 = P(.5)

Divide each side by .5

40/.5 = .5P/.5

80 = P