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

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    Algebra
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Discussion Overview

The discussion revolves around solving for X in a dividend formula presented in a finance context. Participants explore algebraic methods to manipulate the equation and clarify the steps involved in the solution process.

Discussion Character

  • Homework-related, Mathematical reasoning

Main Points Raised

  • One participant presents the equation $30.85 = X/$1.15 + X/($1.15)^2 and asks for a step-by-step algebraic solution.
  • Another participant suggests using brackets to combine terms, proposing the transformation 30.85 = X(1/1.15 + 1/1.152) as a starting point.
  • Another response recommends multiplying both sides by 1.15 to eliminate fractions, leading to a new equation involving X.
  • There is a question raised about the units of X, specifically the implications of dividing by "dollars" resulting in "dollars squared," indicating a concern about dimensional analysis.
  • One participant acknowledges the help received and expresses gratitude.

Areas of Agreement / Disagreement

Participants present different algebraic approaches to solving the equation, and while there is some overlap in methods, no consensus is reached on a single definitive solution process.

Contextual Notes

There are unresolved questions regarding the interpretation of units in the context of the equation, and the discussion does not clarify the implications of these units on the solution.

Who May Find This Useful

Individuals interested in algebraic problem-solving, particularly in finance-related contexts, may find this discussion relevant.

EdLeafs
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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.
 
Last edited:
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Welcome to PF!

Hi EdLeafs ! Welcome to PF! :smile:

(try using the X2 tag just above the Reply box :wink:)
EdLeafs said:
$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. :smile:
 
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"?
 
Last edited by a moderator:
tiny-tim said:
30.85 = X(1/1.15 + 1/1.152) … take it from there. :smile:
HallsofIvy said:
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 :redface:
 
Ahh...I see. thanks a lot.
 

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