Question

he 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:

To solve for r, we undo the operations done to it. r is ...

• added to 1
• and the sum multiplied by Pt

We undo these operations in reverse order, so we first divide by Pt:

... A/(Pt) = 1 + r

Then, we subtract 1:

... A/(Pt) -1 = r