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Need some help

A = P ( 1 + i )

Guest Mar 16, 2015

Best Answer 

 #4
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+5

Thanks CPhill. I understand now.

Guest Mar 17, 2015
 #1
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+5

They are equivalent.

$$\frac{A-P}{P} = \frac{A}{P} - \frac{P}{P} = \frac{A}{P} - 1$$

By the way, these answers are not only equivalent to each other, but also right answers to the question asked.

Guest Mar 16, 2015
 #2
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0

Thanks. I'm still trying to figure how you did that though...

Guest Mar 17, 2015
 #3
avatar+87301 
+5

Let's approach it from the other direction

i = A/P   - 1           notice that  "1" can be written as P/P

So we have

i = A/P  - P/P         and since we have a common denominator, we can just write this all over that denominator...so we have....

i =  [ A - P ] / P        which is exactly the same as the other expression

 

  

CPhill  Mar 17, 2015
 #4
avatar
+5
Best Answer

Thanks CPhill. I understand now.

Guest Mar 17, 2015

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