Question

General MathematicsWhat is the principal of 65,750 due in 10 years if money is worth 15% compounded monthly?*14,807.84*15,478.41*15,078.97*16,252.39

Answer 1

Given:

The total amount is A = 65,750.

The number of years is t = 10 years.

The rate of interest is r = 15% = 0.15.

The number of times compounded monthly is n = 12/year.

The objective is to find the principal amount.

Step-by-step explanation:

The general formula to find the principal amount using total amount is,

`P=(A)/((1+(r)/(n))^(nt))\ldots\ldots(1)`

On plugging the given values in equation (1),

`\begin{gathered} P=(65750)/((1+(0.15)/(12))^(12(10))) \\ =(65750)/((1+0.0125)^(120)) \\ =(65750)/((1.0125)^(120)) \\ =14807.84 \end{gathered}`

Hence, option (1) is the correct anwer.