Hi

Earning $3,000 over 10 years on an investment that pays 5% compounded 'annually'

Note: A= P(1+r/n) ^nt  OR in this case: P + I = P(1+r) ^t and I = P[(1+r)^t - 1]

 $3000 = P[(1.05)^10 - 1] 

 $3000/.6289 = P

   $4770.23 = p



CHECKING our Answer***

  $7770.23 = $4770.23(1.05)^10 

Answer by mananth(16946)   (Show Source): You can put this solution on YOUR website!
 A=p(1+r/n)^nt



p+3000=p(1+0.05/10)^100

p+3000+1.65p

0.65p=3000

p=3000/0.65

P= $4,675 

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