Remember that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested (present value)
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
A=$23,000
r=5%=0.05
n=4
t=14*3=42 months=42/12=3.5 years
substitute in the formula above
[tex]23,000=P(1+\frac{0.05}{4})^{4\cdot3.5}[/tex]Solve for P
