<PRE><B>Question 100918</B>
FV1 = PV + kPV 
must transform into: 
FV1 = PV(1+k) 
I understand the basics cross-multiplying, but cannot for the life of me figure out how the former was transformed into the latter. Your assistance would be greatly appreciated! 
--------------------
Try it with numbers and you will see that it works.
-------------
The property is called &quot;distribution&quot;
A statement of the property says: Multiplication distributes over addition.
Here it is in symbols: a(b+c) = ab+ac
----------------
Your Problem:
FV1 = PV + kPV
Fv1 = PV(1+k)
-------------------
If PV = 4 and k=3 
then FV! = 4+3*4 = 16
--------------------
similarly  4(1+3)= 16
---------
Therefore 4+3*4 = 4(1+3)
-------------------
=================
Cheers,
Stan H.
</PRE>