Question

use the formula A=P(1+rt) and elementary algebra to find the missing quantity. A= $2,242r = 6% t = 3 years P= $ _____ (simplify the answer)

Answer 1

Given the formula

`A=P(1+rt)`

We want to find the 'P' value given the following information:

`\begin{gathered} A=2242 \\ r=0.06 \\ t=3 \end{gathered}`

To find 'P', we just need to make the substitutions in the right places. Change 'A' in the equation for our A value(2242), and do the same with the other parameters.

`A=P(1+rt)\Leftrightarrow2242=P(1+0.06\cdot3)`

Now, we just need to do the calculations

`\begin{gathered} 2242=P(1+0.06\cdot3) \\ 2242=P(1+0.18) \\ 2242=P\cdot1.18 \\ P=(2242)/(1.18)=1900 \end{gathered}`

Our P value is P = $1900.