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

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

Our P value is P = $1900.