Given:
Amount = 8700
Time = 3 years
Rate of interest = 24% per annum
To find:
The principal values.
Solution:
Formula for amount:
[tex]A=P\left(1+\dfrac{r}{100}\right)^t[/tex]
Where, A is amount, P is principal, r is the rate of interest and t is the number of years.
Putting [tex]A=8700,r=24,t=3[/tex], we get
[tex]8700=P\left(1+\dfrac{24}{100}\right)^{3}[/tex]
[tex]8700=P\left(1+0.24\right)^{3}[/tex]
[tex]8700=P\left(1.24\right)^{3}[/tex]
[tex]8700=1.906624P[/tex]
Divide both sides by 1.906624.
[tex]\dfrac{8700}{1.906624}=P[/tex]
[tex]4563.0391729=P[/tex]
[tex]P\approx 4563.04[/tex]
Therefore, the principal value is about 4563.04.
