Answer:
The principal must be = $8991.88
Step-by-step explanation:
Formula for compound interest is:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where A is the amount after 't' years.
P is the principal amount
n is the number of times interest is compounded each year.
r is the rate of interest.
Here, we are given that:
Amount, A = $15000
Rate of interest = 13 % compounded quarterly i.e. 4 times every year
Number of times, interest is compounded each year, n = 4
Time, t = 4 years.
To find, Principal P = ?
Putting all the given values in the formula to find P.
[tex]15000 = P(1 + \frac{13}{400})^{4\times 4}\\\Rightarrow 15000 = P(1 + 0.0325)^{16}\\\Rightarrow 15000 = P(1.0325)^{16} \\\Rightarrow 15000 = P \times 1.66817253\\\Rightarrow P = \dfrac{15000}{1.66817253}\\\Rightarrow P \approx \$8991.88[/tex]
So, the principal must be = $8991.88
