Question

Can someone help me solve this? Not looking for an answer, just an explanation! :)
This is a Compound Interest Formula, I'm being asked to solve for the Interest Rate (represented by r).
2,147.39 = 1,852.1(1+(r/12))^60
I don't know how to isolate r.
Any help is greatly appreciated It's Advanced Algebra with Financial Applications.

Answer 1

\[2,147.39 = 1,852.1(1+\frac{ r }{ 12 })^{60}\]

Answer 2

\[[(2147.39/1852.1)^\frac{ 1 }{ 60 } - 1] \times 12\]

you will need a calculator

Answer 3

Can you explain the steps involved?
I have a calculator.
I want to understand how to do that.

Answer 4

I never learned how to deal with exponents in equations, and my teacher isn't providing assistance.

Answer 5

you do not know how to get further than this, am i right
\[2147.39/1852.1 = (1+ r/12)^6\]

Answer 6

sorry the exponant is 60

Answer 7

I can't eliminate the exponent.

Answer 8

I don't know how to do the converse of the exponent to the other side of the equation.

Answer 9

the trick is: you are allowed to "raise" both sides of the eqation to the same power

Answer 10

?

Answer 11

Ohhh I think I know what you mean
Tell me if this is right?
(2,147.39*1,852.1)^60 = (1+r/12)^60

Answer 12

not quite:
(2,147.39/1852.1)^(1/60) = ((1+r/12)^60)^(1/60)
i'm sorry that must be quite hard to read

Answer 13

i'll explain it differently

Answer 14

do u know what it means when I say "square both sides of the equation?" (talking in genral, not this problem)

Answer 15

Yes
a^2 = a^2

Answer 16

do you understand if I say "take the square root of both sides"

Answer 17

Yes
\[\sqrt{a} =\sqrt{a}\]

Answer 18

now what you should undertand is : \[\sqrt{x+y} = (x+y)^{1/2} \] they mean the same thing

Answer 19

Okay

Answer 20

in this question (i'm simplifying) its something like

\[x+y= (a+b)^{60}\]

Answer 21

and i'm asking you to take the "sixtieth root on both sides"

Answer 22

\[(x+y)^{1/60}=((a+b)^{60})^{1/60}\]

Answer 23

x+y^(60/1) = (a+b)^60)^60/1

Answer 24

Err yeah 1/60 Sorry typo

Answer 25

not 60/1
its 1/60

square root: 1/2
sixtieth root: 1/60

Answer 26

oh lol ok

Answer 27

now use the rule
\[((a)^{m})^n= (a)^{m \times n}\]

Answer 28

So
1.1594 ^(1/60) = ((1+r/12)^60)^(1/60)

Answer 29

yep

Answer 30

THANK YOU SO MUCH!!!
Are you a Senior in HS?

Answer 31

nope...college

Answer 32

Awesome!
Best of luck to you :)
Thanks again!

Answer 33

sure :)

Answer 34

you too