\( \mathrm{A}=\mathrm{P}(1+i)^{n} \) \( \therefore 400000=\mathrm{P}(1+0,15)^{5} \quad \) Substitute known value
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Mind Expander
Did you know that this formula is essentially a way to calculate the future value of an investment or savings account? The "P" represents the principal amount you start with, while \( (1+i)^n \) shows how that principal grows over time with interest compounded annually. It's like watching your money grow into a tree of cash! 🌳💰 When solving for "P," a common mistake is forgetting to properly calculate the compounding amount. In this case, ensure you accurately compute \( (1+0.15)^5 \) before rearranging the equation. Double-checking your math after plugging in values can save you from miscalculations and missed opportunities! 📊🔍