Question

I'm doing some studying and I need some step by step directions for this one.

Solve for i.

A=P(1+i/100)^2

Answer 1

1st step: Divide both sides by P
2nd step: Square root both sides

Answer 2

A/P = (1 + i / 100)^2
sqrt(A/P) = 1 + i / 100
100 * sqrt(A/P) = 1 + i
100 * sqrt(A/P) - 1 = i
\[(100 \times \sqrt{A/P}) - 1\]
That's it if i'm not mistaken

Answer 3

i = that last line...

Answer 4

Think you messed up on line 3....it's 1 + i/100...not (1 + i)/100
So when you multiply both sides by 100 line 3 right side of the = should be
100 + i

Answer 5

Going from line 2 to line 3, subtract 1 first and then multiply by 100.

Answer 6

Exactly, if it was meant to be 1 + (i/100) then that's correct. I assumed that it was (1 + i)/100

Answer 7

It's the formula for compound interest applied for 2 periods
100 * sqrt(A/P) = 100 + i
100* sqrt(A/P) - 100 = i
or i = 100(sqrt(A/P) - 1) factoring out the 100

Answer 8

Ok. Thank you everyone. Much appreciated.

Answer 9

Anytime, Good luck with your studies. Thanks for the medal too :)