Given:
The total amount is A = 65,750.
The number of years is t = 10 years.
The rate of interest is r = 15% = 0.15.
The number of times compounded monthly is n = 12/year.
The objective is to find the principal amount.
Explanation:
The general formula to find the principal amount using total amount is,
[tex]P=\frac{A}{(1+\frac{r}{n})^{nt}}\ldots\ldots(1)[/tex]On plugging the given values in equation (1),
[tex]\begin{gathered} P=\frac{65750}{(1+\frac{0.15}{12})^{12(10)}} \\ =\frac{65750}{(1+0.0125)^{120}} \\ =\frac{65750}{(1.0125)^{120}} \\ =14807.84 \end{gathered}[/tex]Hence, option (1) is the correct anwer.
