Question

use the formula for future value, A= P(1 +rt), and elementary algebra to find the missing quantity. A = $1,690; r = 6% t= 5 yearsP= $_____

Answer 1

The algebraic expression given for future value is;

`A=P(1+rt)`

Given:

`\begin{gathered} A=\text{ \$1690} \\ r=6\text{ \%} \\ t=5\text{years} \\ P=\text{?} \end{gathered}`

Substituting these values into the formula given,

`\begin{gathered} A=P(1+rt) \\ 1690=P(1+((6)/(100)*5)) \\ 1690=P(1+0.3) \\ 1690=P(1.3) \\ 1690=1.3P \\ \text{Dividing both sides by 1.3 to find P;} \\ P=(1690)/(1.3) \\ P=\text{ \$1,300} \end{gathered}`

Therefore, P = $1,300