Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3 - Page 512: 30



Work Step by Step

Divide $(1+\frac{r}{n})^{nt}$ on both sides of the equation to obtain: $\dfrac{A}{(1+\frac{r}{n})^{nt}}=\dfrac{P(1+\frac{r}{n})^{nt}}{(1+\frac{r}{n})^{nt}}$ Cancel the common factors to obtain: $\require{cancel} \\\dfrac{A}{(1+\frac{r}{n})^{nt}}=\dfrac{P(\cancel{1+\frac{r}{n})^{nt}}}{\cancel{(1+\frac{r}{n})^{nt}}}$ $\dfrac{A}{(1+\frac{r}{n})^{nt}}=P$
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