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11Alexandr11 [23.1K]
3 years ago
9

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

Mathematics
2 answers:
Aleks04 [339]3 years ago
7 0

Answer:  r=(\frac{A}{P})^{\frac{1}{t}}-1


Step-by-step explanation

Compound interest is the addition of interest to the principal sum of a deposit or a loan.

Let P = principal amount which was taken as a loan then the accumulated amount A is given by

A=P(1+r)^t.......(1)

where, r is the rate of simple annual interest in decimal.

t is the time applied for interest.

For solving r divide both sides of equation by P in (1),we get

\frac{A}{P}=(1+r)^t\\\Rightarrow(\frac{A}{P})^{\frac{1}{t}}=1+r\\\Rightarrow\ r=(\frac{A}{P})^{\frac{1}{t}}-1.

vodka [1.7K]3 years ago
5 0
We are asked to express r in terms of A, P, and t.

We first divide both sides of the equation by t, which gives us

                                         
                     \displaystyle{ \frac{A}{t}=P(1+r), 


then, dividing both sides by P, we have

                     \displaystyle{ \frac{A}{Pt}=1+r.

Swap the sides:

                    \displaystyle{ 1+r= \frac{A}{Pt} 
      
Finally subtracting 1 from both sides gives us

                     \displaystyle{ r=\frac{A}{Pt}-1.


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