Answer:
Explanation:
Rate of interest is 5%.
Time =3years
Amount =$852
Then, we need to find P
Generally compound interest is given as
A=P(1+r/n)^nt
A=final amount
P=initial principal balance
r=interest rate
n=number of times interest applied per time period=12
t=number of time periods elapsed
A=P(1+r/n)^nt
852=P(1+0.05/12)^(12×5)
852=P(1+0.004167)^60
852=P(1.004167)^60
852=1.2834P
Then, P=852/1.2834
P=$663.88
Then the principal amount invested is $663.88
Approximately $664