Question

If amount is 7,500, time is 2years and rate is 10% then find principal?​

Answer 1

Principal = $9,152.93

Explanation:

A = $9,152.93

A = P + I where

P (principal) = $7,500.00

I (interest) = $1,652.93

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 10/100

r = 0.1 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 7,500.00(1 + 0.1/12)(12)(2)

A = 7,500.00(1 + 0.008333333)(24)

A = $9,152.93

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $7,500.00 at a rate of 10% per year compounded 12 times per year over 2 years is $9,152.93.