Question

The formula A=P(1+r)t is used to show the total amount owed for a loan with a simple annual interest rate.

Solve for r.

Answer 1

r = A/Pt - 1

Explanation:

A = P(1 + r)t

Divide by P and t

A/Pt = 1 + r

Minus 1

A/Pt - 1 = r