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? $60 $80 $90 $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? $60 $80 $90 $100

Answer

Explanation:

Step1: Identify given values

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

Step2: Rearrange the simple - interest formula

We have $I=Prt$, so $P=\frac{I}{rt}$.

Step3: Substitute values into the formula

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

Answer:

$80$