We have given amount after 3 years = $3,000.
Rate of interest = 4%.
Number of years = 3 years.
We know compound interest formula.
Note: We can use compound interest formula directly. No log required there.
A=P(1+r)^t
Plugging values in formula, we get
[tex]3000=P\left(1+0.04\right)^3[/tex]
We need to solve it for P now.
[tex]3000=P(1.04)^3[/tex]
Dividing both sides by (1.04)^3, we get
[tex]\frac{3000}{(1.04)^3}=P[/tex]
(1.04)^3 = 1.124864
Dividing 3000 by 1.124864, we get
P = 2666.99
