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What is the principal that will grow to $3300 in nine years, five months at 5.8% compounded quarterly?

The principal is $

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Final answer:

To find the principal that will grow to $3300 in nine years, five months at 5.8% compounded quarterly, we can use the formula for compound interest. Solving the equation will give us the principal value.

Step-by-step explanation:

To find the principal that will grow to $3300 in nine years, five months at 5.8% compounded quarterly, we can use the formula for compound interest:

Compound Interest (A) = P(1 + r/n)^(nt)

Where:
P = principal (unknown)
r = annual interest rate (5.8% or 0.058)
n = number of times interest is compounded per year (quarterly, so n=4)
t = time in years (9 years and 5 months, or approximately 9.42 years)

Now, we can substitute the values into the formula and solve for P:

$3300 = P(1 + 0.058/4)^(4*9.42)

Solving this equation will give us the principal value.

User Sumanth Hegde
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