the simple interest formula is $i = prt$, where $i$ represents simple interest on an amount, $p$, for $t$…

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?\n$60\n$80\n$90\n$100

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?\n$60\n$80\n$90\n$100

Answer

Explanation:

Step1: Identify given values

$I = 40$, $r=0.1$ (since 10% = 0.1), $t = 5$

Step2: Rearrange the formula for $P$

From $I=Prt$, we get $P=\frac{I}{rt}$

Step3: Substitute values into the formula

$P=\frac{40}{0.1\times5}$ $P=\frac{40}{0.5}$ $P = 80$

Answer:

$80$ (corresponding to the option: $$80$)