For the following exercises, use the compound interest formula, A(t)=P(1+rn)nt. Use properties of rational exponents to solve the compound interest formula for the interest rate, r.

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For the following  exercises, use the compound interest formula, A(t)=P(1+rn)nt.  Use properties of rational exponents to solve the compound interest formula for the interest rate, r.

Aamina Herring · Accepted Answer

Calculation:&amp;nbsp;The compound interest formula is as follows:A(t)=P(1+rn)nt&amp;nbsp;where A(t) denotes the account value, t denotes the number of years, P denotes the account&#039;s starting balance, also known as the principal or, more generally, present value, r denotes the annual percentage rate (APR) expressed in decimal form, and n denotes the number of compounding periods in a year.the might of both sides together&amp;nbsp;1nt,&amp;nbsp;we get&amp;nbsp;A1nt=P(1+rn)&amp;nbsp;Divide both sides by P&amp;nbsp;A1ntP=(1+rn)&amp;nbsp;Substract 1 from both sides&amp;nbsp;A1ntP−1=rn&amp;nbsp;By n-folding both sides, we obtainn(A1ntP−1)=r&amp;nbsp;Hence,&amp;nbsp;r=n(A1ntP−1)

Jeffrey Jordon · Accepted Answer

Answer is given below (on video)

For the following exercises, use the compound interest formula, displaystyle{A}{left({t}right)}={P}{left({1}+frac{r}{{n}}right)}^{{{n}{t}}}. Use properties of rational exponents to solve the compound interest formula for the interest rate, r.

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