Question 978381

The following applies only to interest compounded continuously.
 
The formula for interest that is compounded is:
 
{{{A=Pe^(rt)}}}
     

    {{{A}}} represents the amount of money after a certain amount of time
    {{{P}}} represents the principle or the amount of money you start with
    {{{r}}} represents the interest rate and is always represented as a decimal
    {{{t}}} represents the amount of time in years

given:

{{{A=12000}}}
{{{r=0.06}}}
{{{t=10}}}

to find:{{{P}}}

{{{A=Pe^(rt)}}}

{{{P=A/e^(rt)}}}

{{{P=12000/e^(0.06*10)}}}

{{{P=12000/e^(0.6)}}}

{{{P=12000/e^(0.6)}}}.........{{{e^(0.6)=1.82212}}}

{{{P=12000/1.82212}}}

{{{P=6585.74}}}