Question

The formula A=P(1 + r) can be used to relate the future value A of a deposit of P dollarsin an account that earns an annual interest rate r (expressed as a decimal) after t years.a. Solve the formula for P.b. How much would you have to deposit today in order to have $6000 in 5 years in abank account that pays 5% annual interest?

Answer 1

Given:

There are given that the formula of A.

`A=P(1+rt)`

Step-by-step explanation:

According to the question:

(a). We need to solve for P.

So,

From the formula:

`\begin{gathered} A=P(1+r) \\ P=(A)/(1+r) \end{gathered}`

Therefore, the value of P is shown below:

`P=(A)/(1+r)`

Now,

(b).

Put 6000 for A,