tahmar knows the formula for simple interest is i = prt, where i represents the simple interest on an amount…

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 = i/rt. using this formula, what is the amount of money, p, that will generate $20 at a 5% interest rate over 5 years?

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 = i/rt. using this formula, what is the amount of money, p, that will generate $20 at a 5% interest rate over 5 years?

Answer

Explanation:

Step1: Identify values

$I = 20$, $r=0.05$, $t = 5$

Step2: Substitute values into formula

$P=\frac{I}{rt}=\frac{20}{0.05\times5}$

Step3: Calculate the value of P

$P=\frac{20}{0.25}=80$

Answer:

80