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Math Help - How to find the principle of interest?

  1. #1
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    How to find the principle of interest?

    Hey. Here's the question
    Find the principle that would amount to $6000 in 3 years at 8.3% p.a compounding daily. Assume there are no leap years in this time.
    Would the equation for this problem be a=p(1+i)^n? Where a = $6000 and n = 3x365.
    How would I solve this?
    Thanks very much.
    Sophie.
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  2. #2
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    Re: How to find the principle of interest?

    Quote Originally Posted by OneWish View Post
    Hey. Here's the question
    Find the principle that would amount to $6000 in 3 years at 8.3% p.a compounding daily. Assume there are no leap years in this time.
    Would the equation for this problem be a=p(1+i)^n? Where a = $6000 and n = 3x365.
    How would I solve this?
    Thanks very much.
    Sophie.
    A = P\left(1 + \frac{r}{n}\right)^{nt}

    solve for P
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  3. #3
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    Re: How to find the principle of interest?

    P = 6000 / [(1 + .083/365)^(365*3)]
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