Answer:
The principal amount is $22.747.95
Step-by-step explanation:
Given:
Amount = %25000
Time = 3 years
Rate of interest = 3.2%
To Find:
the principal amount = ?
Solution:
The principal amount
[tex]P = \frac{A}{(1 + \frac{r}{n})^{nt}}[/tex]
Where
A is the amount
n is the number of times that interest is compounded per unit t
t is the number of years
r is the rate of interest
On substituting the values
[tex]P = \frac{25000}{(1 + \frac{\frac{3.2}{100}}{1})^{1(3)}}[/tex]
[tex]P = \frac{25000}{(1 + \frac{0.032}{1})^{1(3)}}[/tex]
[tex]P = \frac{25000}{(1 + 0.032)^3}[/tex]
[tex]P = \frac{25000}{(1.032)^3}[/tex]
[tex]P = \frac{25000}{1.099}[/tex]
[tex]P =\$22.747.95[/tex]
