How much did he originally invest?

 Calculus Tutor: None Selected Time limit: 1 Day

Jul 10th, 2015

Thank you for the opportunity to help you with your question!

-------------------------------------------------------------------------------------------------------

Amount, A = \$25,628.15

Time, t = 5 years

Rate of interest, r = 6% = 0.06

Number of times interest is compounded per year, n = 12

Principal, P = ?

The compound interest formula is given by

$\\ A=P\bigg(1+\frac{r}{n}\bigg)^{nt}\\ \\ 25628.15=P\bigg(1+\frac{0.06}{12}\bigg)^{12\times5}\\ \\ 25628.15=P(1.005)^{60}\\ \\ P(1.005)^{60}=25628.15\\ \\ P=\frac{25628.15}{(1.005)^{60}}\\ \\ P=\19000$

ANSWER:  Principal, P = \$19000

-------------------------------------------------------------------------------------------------------

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 10th, 2015

...
Jul 10th, 2015
...
Jul 10th, 2015
Oct 22nd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle