Question

The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.

Find the principal invested if $11,000 interest was earned in 4 years at an interest rate of 6%.

Answer 1

P = $ 45833.33

Step-by-step explanation:

Given data:

interest amount = $11,000

time = 4 year

interest rate = 6%

we know that

simple interest = PRT

`11000 = P* 0.06* 4`

solving for Principal amount P,

P = $ 45833.33