Question

The simple interest formula is I = Prt, where I represents simple interest on an amount, P, for t years at a rate of r. The equation solved for P is P = . 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 1

In the attachment I have answered this problem.

The solution is simple and easy to understand.

See the attachment for detailed solution.

Answer 2

The simple interest formula is I = prt , where I represents simple interest on an amount, P for t years at a rate of r%.

Given,
I = $40 , r = 10% , t =5 years .

I = Prt

40 = P × 10 × 5/100

40 = P/2

P = 80

hence, amount of money = $80.