9514 1404 393
Answer:
$80
Step-by-step explanation:
You are given the formula ...
P = I/(rt)
and the values I = 20, r = 0.05, t = 5.
Put the numbers in place of the corresponding variables and do the arithmetic.
P = 20/(0.05·5) = 20/0.25 = 80
The amount $80 will generate $20 in interest over 5 years at 5% per year.
