Review Example 3. An alternative method for solving Example 3 would have been to use the present value formula from Section 2-8 as shown here:

In parts a–h below, write the equations that result when you follow the steps of this formula and show that it yields the same result as the solution to Example 3.

a. Let B = 10,000, P = 400, r = 0.0195, and n = 12. Substitute these values into the present value formula.
b. Simplify wherever possible.
c. Eliminate the denominator. Multiply both sides of the equation by the expression in the denominator.
d. You will now try to isolate the variable t on one side of the equation. Divide both sides by 400.
e. Add 1 to both sides of the equation.
f. You now should have an exponential equation in standard form. Apply the One-to-One Property by taking the common log of both sides of the equation.
g. Apply the Power Property to remove the exponent.
h. Solve for t. Round your answer to the nearest hundredth.

P = r n nt BX- 1 + n -1