Question

I need to use the formula value, A = P(1 + rt), and elementary algebra to find the Principal

Answer 1

P= $1300

Explanation

when you have the rate, the time and the initial value , you can find the principial by using the formula

$\begin{gathered} A=P(1+rt)^ \\ where\text{ P is the principal} \\ A\text{ is the amounnt} \\ r\text{ is the rate \lparen in decimal\rparen} \\ t\text{ is the number of periods} \end{gathered}$

so

Step 1

a)let

$\begin{gathered} A=1508 \\ r=4\text{ \%=}\frac{4}{100}=0.04 \\ t=4\text{ \lparen years\rparen} \end{gathered}$

now, replace in the formula

$\begin{gathered} A=P(1+r)^ \\ 1508=P(1+0.04*4) \\ 1508=P(1.16) \\ divide\text{ both sides by 1.16} \\ \frac{1,508}{1.16}=\frac{P(1.16)}{1.16} \\ 1300=P \end{gathered}$

therefore, the answer is

P= $1300

I hope this helps you