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Plzz po pasagot ksama solution reviewer ko po .

Mr.Santos investment earns interest at annual rate of 12% compounded semiannually.after 3 years ,the total amount is P 110,255.09.approximately,How much money was originally invested?


Sagot :

[tex]A = P (1+ \frac{r}{n} ) ^{(n)(t)} [/tex]

Where given are:
A = total amount of investment with interest = 110 255.09
P = Principal amount = Unknown
r = rate of compound interest = 0.12
t = number of years = 3
n = number of times interest in compounded annually = 2 (semi-annually)

[tex]110,255.09 = P (1 + \frac{0.12}{2} ) ^{(2)(3)} [/tex]

[tex]110,255.09 = P (1.06) ^{6} [/tex]

110, 255.09 = P (1.4185)
   (1.4185)          (1.4185)

P = 77,726.54   money originally invested