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

Answer:

P = $ 45833.33

Explanation:

Given data:

interest amount = $11,000

time = 4 year

interest rate = 6%

we know that

simple interest = PRT

$11000 = P\times 0.06\times 4$

solving for Principal amount P,

P = $ 45833.33