Chapter 1: Introduction

Introduction: Formulas are a part of life. There are formulas which banks use to calculate interest and interest rates. There are formulas in science, statistics, finance and geometry. Formulas help us make important calculations and understand the world around us.

Look at the example $A=P{(1+\raisebox{1ex}{$r$}\!\left/ \!\raisebox{-1ex}{$n$}\right.)}^{nt}$. This is a formula which banks use to calculate how much money will be projected to be in a CD (certificate of deposit) after t number of years. If we plugged in numbers into this formula, would you be able to calculate the future value amount? A large part of algebra and statistics revolves around the study and use of formulas. Using formulas correctly is the focus of the first half of our book and a recurrent theme throughout the class.

Adapted from Preparing for Algebra and Statistics, Third Edition, by Matt Teachout. License: CC BY 4.0. Copyright and sources.