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

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: Substitute the known values into the formula

Given (I = 40), (r=0.1) (since (10%=0.1)), (t = 5) into (I=Prt). We get (40=P\times0.1\times5).

Step2: Solve for (P)

First, simplify the right - hand side of the equation: (P\times0.1\times5 = 0.5P). Then, solve the equation (40 = 0.5P) for (P). Divide both sides of the equation by (0.5), so (P=\frac{40}{0.5}).

Answer:

(P = 80), so the answer is ($80) (the second option).