# Need help rearranging a formula

• Oct 2nd 2012, 02:34 PM
Mozuna01
Need help rearranging a formula
Can someone help me algebraically rearrange the compound interest formula in order to find r? A=P(1+r/n)^(nt) rearranged to r=?

• Oct 2nd 2012, 02:43 PM
skeeter
Re: Need help rearranging a formula
$A = P\left(1 + \frac{r}{n}\right)^{nt}$

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

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

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

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