Can anyone explain how the second line is gotten and if this is some rule i.e. Factorization?
Any help appreciated!
This is a formula for interest. it is in the tables book. the formula is F=P(1+i)^t
p=the starting amount
i the rate of interest, converted from % to decimals. e.g 5%=0.05
t= the amount of time.
this question asks you to work backwards after giving you some information. fill the numbers into the formula. the first number in the bracket needs to be1 and so the question is dividing the bracket by 5088.50 to get it to equal to 1.
Hope this helps!:)
The one kind of mark that its the whole price plus the 5% ... I think
I think the one means that it is the whole number plus the 5%