Trouble factoring

Mathless

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Mar 14, 2019
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The text I'm reading says FV=PV+PV×i can be simplified by factoring out the PV so that it becomes FV=PV(1+i). But I don't understand how. Could someone walk me through the steps? - Thanks
 

Dr.Peterson

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Nov 12, 2017
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FV = PV + PV×i = PV×1 + PV×i = PV×(1 + i)

This uses the distributive property in reverse; and it is also the same idea as combining like terms. If you have x + 5x, that's 1+5 times x (an x, and 5 more).
 

316matrix

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May 15, 2019
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The PV can be thought of as the GCF (greatest common factor) that has been distributed.

Ex: a(b+i) = ab+ai where a is the GCF
 
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