1. **Stating the problem:**
We have the compound interest formula:
$$F = P(1 + i)^t$$
We need to make each of the following the subject of the formula:
(a) $P$
(b) $i$
(c) $t$
2. **Rearranging for (a) $P$:**
Start with:
$$F = P(1 + i)^t$$
Divide both sides by $(1 + i)^t$ to isolate $P$:
$$P = \frac{F}{(1 + i)^t}$$
Intermediate step showing cancellation:
$$P = \frac{F}{\cancel{(1 + i)^t}} \times \cancel{\frac{1}{(1 + i)^t}}$$
3. **Rearranging for (b) $i$:**
Start with:
$$F = P(1 + i)^t$$
Divide both sides by $P$:
$$\frac{F}{P} = (1 + i)^t$$
Intermediate step:
$$\frac{\cancel{F}}{\cancel{P}} = (1 + i)^t$$
Take the $t$-th root (or raise both sides to the power $\frac{1}{t}$):
$$\left(\frac{F}{P}\right)^{\frac{1}{t}} = 1 + i$$
Subtract 1 from both sides:
$$i = \left(\frac{F}{P}\right)^{\frac{1}{t}} - 1$$
4. **Rearranging for (c) $t$:**
Start with:
$$F = P(1 + i)^t$$
Divide both sides by $P$:
$$\frac{F}{P} = (1 + i)^t$$
Take the natural logarithm of both sides:
$$\ln\left(\frac{F}{P}\right) = \ln\left((1 + i)^t\right)$$
Use logarithm power rule:
$$\ln\left(\frac{F}{P}\right) = t \ln(1 + i)$$
Divide both sides by $\ln(1 + i)$:
$$t = \frac{\ln\left(\frac{F}{P}\right)}{\ln(1 + i)}$$
Intermediate step showing cancellation:
$$t = \frac{\ln\left(\frac{F}{P}\right)}{\cancel{\ln(1 + i)}} \times \cancel{\frac{1}{\ln(1 + i)}}$$
**Final answers:**
(a) $$P = \frac{F}{(1 + i)^t}$$
(b) $$i = \left(\frac{F}{P}\right)^{\frac{1}{t}} - 1$$
(c) $$t = \frac{\ln\left(\frac{F}{P}\right)}{\ln(1 + i)}$$
Compound Interest 2D6Bdf
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