Final answer:
The formula A=P(1 + r) matches with 'A' as the Final amount, 'P' as the Starting amount, and 'r' as the Growth rate, while 'Time' is not explicitly included unless expressed with an exponent for multiple periods.
Step-by-step explanation:
The formula A=P(1 + r) is commonly used to calculate the future value of an investment or loan based on its present value, interest rate (growth rate), and time. Each part of this formula can be matched to its definition as follows:
- A: Final amount/Answer (b)
- P: Starting amount (c)
- r: Growth rate (a)
- Time is not explicitly represented in the formula A=P(1 + r), as the formula shows the calculation after one time period. For multiple time periods, this would typically be represented with an exponent on the (1 + r) term, such as in A = P(1 + r)^t, where t would represent time.
The ability to calculate the future value using the given formula is crucial in various contexts such as financial savings, compound interest growth, and GDP growth rates, as it demonstrates the effect of compound growth over time.