SOLUTION: how to derive compound interest formula A= P(1+ r/n) ^nt to the formula of rate r= n[(A/P)^1/nt -1]. step by step on how to derive it
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Question 1173087: how to derive compound interest formula A= P(1+ r/n) ^nt to the formula of rate r= n[(A/P)^1/nt -1]. step by step on how to derive it
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
how to derive compound interest formula
divide both sides by P
multiply the exponent by it's reciprocal, gets rid of the one on the left
subtract 1 from both sides
multiply both sides by n
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