Practice problem
The equation for compound interest is A=P(1+rm)tmA=P(1+\frac{r}{m})^{tm}A=P(1+mr)tm. Solve for rrr.
r=m[(AP)1tm−1]r=m[(\frac{A}{P} )^{\frac{1}{tm}}-1]r=m[(PA)tm1−1]
r=m[(AP)tm−1]r=m[(\frac{A}{P} )^{tm}-1]r=m[(PA)tm−1]
r=m[(PA)1tm−1]r=m[(\frac{P}{A} )^{\frac{1}{tm}}-1]r=m[(AP)tm1−1]
r=(AP)1tm−1r=(\frac{A}{P} )^{\frac{1}{tm}}-1r=(PA)tm1−1
Type a concept, like “slope” or “photosynthesis”.
