Answer:
The Principal is $877.19 And Compound Interest is $372.81
Step-by-step explanation:
Given as :
Amount after investment = $1250
The time period of investment = 6 years
The nominal rate = 6% compounded semiannually
Let the principal = P
From compounded method
Amount = Principal × [tex](1 + \frac{Rate}{2\times 100})^{2\times Time}[/tex]
Or, $1250 = P × [tex](1 + \frac{6}{2\times 100})^{2\times 6}[/tex]
Or, $1250 = P × [tex](1.03)^{12}[/tex]
Or, $1250 = P × 1.425
∴ P = [tex]\frac{1250}{1.425}[/tex]
I.e P = $877.19
So , Principal = $877.19
Now, Compound Interest = Amount - Principal
= $1250 - $877.19
Or, CI = $372.81
Hence The Principal is $877.19 And Compound Interest is $372.81 Answer
