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 = P : P equals StartFraction I Over r t EndFraction.. Using this formula, what is the amount of money, P, that will generate $20 at a 5% interest rate over 5 years?
+36916 P = I/rt you are looking for P
you are given : I =20 r = .05 (this is 5%) and t = 5 years
plug in these values to calculate P ...............
