Homework Soursefind the principal P that will generate the given future val
find the principal P that will generate the given future value A where A= $13,000 at 8% compound annually for 11 years. Round to two decimal places.
Solution
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| Given | ||||
| Principal (P) | ||||
| Rate Of Interest (\'r) | = | 8% | ||
| Time (n) | = | 11 | years | |
| Amount | = | 13000 | $ | |
| Amount | = | P (1 + r/100)^n | ||
| Substituting values | ||||
| 13000 | = | P (1 + 8/100)^11 | ||
| P | = | 5575.477171 | $ | |
| = | 5575.48 | $ | ||
| Solution |
