Enter 3 out of 4 below
Answer
Success!
Principal using Compound Interest = 6274.12
↓Steps Explained:↓
Given an accumulated balance of 10000,
at an interest rate of 6% at time 8
Calculate the Principal using Compound Interest:
Accumulated Balance Formula
Accumulated Value = Principal x (1 + i)time
Divide each side by (1 + i)time
Accumulated Value | |
(1 + interest rate)time |
Principal x (1 + interest rate)time |
(1 + interest rate)time |
Principal = | Accumulated Value |
| (1 + interest rate)time |
Plug in our values
Principal = | 10000 |
| (1 + 0.06)8 |
Principal = | 10000 |
| (1.06)8 |
Principal = | 10000 |
| 1.5938480745308 |
Calculate the total interest earned:
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 6274.12 - 6274.12
Total Interest Earned = 0
Calculate the interest earned:
Interest per Period = | Interest Earned |
| t |
Interest per Period = | 0 |
| 8 |
Interest per period = 0
Final Answer
Principal using Compound Interest =
6274.12
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