Answer:
Principal, P = $23675.90
Step-by-step explanation:
Given the following data;
Interest rate = 2.2 %
Future value = $27000
Time = 6 years
Number of times = 365 days
To find the principal amount, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Substituting into the equation, we have;
[tex] 27000 = P*(1 + \frac{0.022}{365})^{365*6}[/tex]
[tex] 27000 = P*(1 + 0.000060)^{2190}[/tex]
[tex] 27000 = P*(1.000060)^{2190}[/tex]
[tex] 27000 = P*(1.1404)[/tex]
[tex] P = \frac {27000}{1.1404} [/tex]
Principal, P = $23675.90
