Question

What is the amount of money , P, that will generate $40 in interest at a 10% interest rate over 5 years ?

Answer 1

Answer:

The amount of money is 60$

Step-by-step explanation:

Given,         Principal, P = $40

                   Rate, R = 10%

                   Time, T = 5 years

We have to calculate the amount A = S.I + P

             $S.I =\frac{ P\times R \times T}{100}$

⇒           $S.I = \frac{40\times 10\times 5}{100}$

                          =  20

Hence, Amount = S.I + P

                            = 20 + 40 = 60$

Answer 2

The amount that will generate $40 interest over 5 years is $80.

What is the amount?

Interest is the amount the borrower pays the lender for use of his funds. The interest paid depends on the amount borrowed, interest rate and the duration of the loan.

Amount = interest / (time x interest rate)

$40 / (0.1 x 5) = $80

To learn more about interest, please check: https://brainly.com/question/26164549

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