# Math Help - How to find the principle of interest?

1. ## 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.

2. ## Re: How to find the principle of interest?

Originally Posted by OneWish
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 $P$

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

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