solve the formula a = p((1 + r/n)^nt - 1)/(r/n) for p. what does the resulting formula describe? p =

Explanation:

Step1: Multiply both sides by $\frac{r}{n}$

$A\times\frac{r}{n}=P\left[\left(1 + \frac{r}{n}\right)^{nt}-1\right]$

Step2: Solve for $P$

$P=\frac{A\times\frac{r}{n}}{\left(1+\frac{r}{n}\right)^{nt}-1}=\frac{Ar}{n\left[\left(1 + \frac{r}{n}\right)^{nt}-1\right]}$

Answer:

$\frac{Ar}{n\left[\left(1+\frac{r}{n}\right)^{nt}-1\right]}$

The resulting formula describes the principal amount $P$ in a compound - interest related annuity formula. Here, $A$ is the future value of the annuity, $r$ is the annual interest rate, $n$ is the number of times interest is compounded per year, and $t$ is the number of years.