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?

a $60

b $80

c $90

d $100

Question

Mathematics

Kaelyn Bond

19 September, 13:46

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?

a $60

b $80

c $90

d $100

+2

Answers (1)

Know the Answer?

Anabella Vasquez · Answer 1

b $80

Step-by-step explanation:

Interest = Principal x Interest Rate x Time

$40 = P x 0.1 x 5

$40 = 0.5 P

Dividing the equation by 0.5 we get;

P = $40 / 0.5

P = $80

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?a $60b $80c $90d $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?

a $60

b $80

c $90

d $100