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

Question

tkhunny · Answer

Please substitute the known values.  They are given in the problem statement.

ezra · Answer

$$P= \frac{ 20}{ 5*5}?$$

ezra · Answer

$$P=\frac{ 20 }{ 0.05*5 }$$

tkhunny · Answer

Bad.  Good.  And the answer is...?

ezra · Answer

Sorry, the final answer was 80, it didn't click in my mind what to do at first. Thanks :)