Question

The formula for the future value VV (in dollars) of an investment earning simple interest is V=p+prtV=p+prt, where pp (in dollars) is the principal, rr is the annual interest rate (in decimal form) and tt is the time (in years). a. Solve the formula for pp.

Answer 1

The future value of the investment in dollars s
V = p + prt
where
p = principal, dollars
r = annual interest rate (in decimal form)
t = time, years

To determine p, write the formula as follows:
Factorize p out on the right side.
V = p(1 + rt)
Divide each side b (1 + rt).

`(V)/(1+rt)=p`

Answer:

`p= (V)/(1+rt)`