Enter 3 out of 4 below

<-- Accum Value
<-- Principal
<-- Interest %
<-- Time
      

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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