How Do You Algebraically Solve for X in a Dividend Formula?

[EdLeafs]

This isn't a homework question...just something I picked up on a finance book about dividends. Say you have something like this.

$30.85 = X/$1.15 + X/($1.15)^2

How do I solve for x step by step? They give me an answer of $18.98 and if I sub that # into x I get 30.85. How do I do it the other way...algebraically?

Thanks.

 

[tiny-tim]

Welcome to PF!

Hi EdLeafs ! Welcome to PF!

(try using the X² tag just above the Reply box )

$30.85 = X/$1.15 + X/($1.15)^2

Easy … use brackets …

30.85 = X(1/1.15 + 1/1.15²) … take it from there. ​

 

[HallsofIvy]

The first thing I would do is multiply both sides by 1.15 to get rid of the fractions!

(1.15)²(30.85)²= (1.15)X+ X= 2.15X

Now divide both sides by 2.15.

I'm wondering what X represents that dividing by "dollars" results in "dollars"! It has units of "dollars squared"?

 

[tiny-tim]

30.85 = X(1/1.15 + 1/1.15²) … take it from there. ​

The first thing I would do is multiply both sides by 1.15 to get rid of the fractions!

(1.15)(30.85)²= (1.15)X+ X= 2.15X

(erm)² …

 

[EdLeafs]

Ahh...I see. thanks a lot.