Annual Interest & Capital Equation
I have been studying for a mathematics entrance test and the following problem came up on the practice exam:
Capital K is deposited at an annual interest rate of 4%. Interest is compounded
once a year. In fifteen years time the capital has grown to an amount of
108056.62 euro. Compute the principal capital K.
Could anyone suggest a formula/formulas for solving this problem. Also, could anyone suggest an area of mathematics to concentrate my efforts toward problems such as the above.