Verified answer

In the given problem, apply your knowledge in algebraic expression specially in finance specifically in calculation of interest

Given:

$50,800.00, total money

6 years and 9 months

8 ½ % compounded quarterly

Solution:

The formula for compound interest is A = P (1 + r/n)^(nt), where

A is the total money

P is the principal amount,

r is the interest rate in decimal

n is the number of times interest will be compounded

t is the time period.

Solve for Principal Amount

A = P (1 + r/n)^(nt)

quarterly means 4 times a year

6 years and 9 months = 6.75 years

50 800 = P(1 + 0.085/4)^(4)(6.75)

50 800 = P(1.02125)^27

P = 50 800/(1.02125)^27

P = 28 793.72

Answer: $ 28 793.72

Learn more about compound interes here at

brainly.ph/question/2258748

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