Tamara J. answered 05/14/13
Math Tutoring - Algebra and Calculus (all levels)
PV = PMT/i
The goal is to solve the formula for i, doing so by isolating it to one side of the equation.
The first step would be to cross multiply:
PV/1 = PMT/i
PV·i = 1·PMT
PVi = PMT
Divide both sides of the equation by PV to solve for i:
PVi/PV = PMT/PV
==> Looking at the left hand side, since there is a PV in both the numerator and the denominator they cancel each other out. The right hand side has a P in both the numerator and the denominator which also cancel each other out. This yields the following:
PVi/PV = PMT/PV
i = MT/V