In the compound interest formula A=P(1+i)^n. Isolate the variable 'i'?

1 Answer

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embizze | High School Teacher | (Level 2) Educator Emeritus

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Begin with `A=P(1+i)^n`

`A/P=(1+i)^n` divide both sides by P

`root(n)(A/P)=1+i` take the `n^(th)` root of both sides

`root(n)(A/P)-1=i` subtract 1 from both sides

Thus the answer is `i=root(n)(A/P)-1`