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19 votes
What was the principal for a

semi-annually compounded account
earning 3.9% for 15 years that now has a
balance of $2,500?

User MaxPY
by
8.0k points

1 Answer

6 votes

Answer: $1,400.63

Work Shown:


A = P*\left(1+(r)/(n)\right)^(n*t)\\\\ 2500 = P*\left(1+(0.039)/(2)\right)^(2*15)\\\\ 2500 \approx P*1.7849123867454\\\\ P \approx (2500)/(1.7849123867454)\\\\ P \approx 1400.62897123959\\\\ P \approx 1400.63\\\\

User Frans
by
7.9k points

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