Question 1102444
f = p * (1+r) ^ n


f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.


you are given that:


f = 9000
r = 4% per year compounded quarterly.
n = 6 years.


your time periods will be in quarters and you need to use the rate as a decimal rather than as a percent.


your rate as a decimal = 4% / 100 = .04 per year.
divide that by 12 to get a monthly rate of .04/12
your number of quarters will be 6 * 12 = 72


you will get:


p = what you want to find
f = 9000
r = .04/12
n = 72


your formula of f = p * (1+r) ^ n becomes:


9000 = p * (1 + .04/12) ^ 72


solve for p to get p = 9000 / ((1 + .04/12) ^ 72)


this results in p = 7082.476897


that's your principal.