Find the principal P that will generate the given future value​ A, where A=​$13,000 at 8​% compounded daily for 10 years

Answer 1

I think you would use this P = P_o (1 + (r/n))^nt

Where P is the Value after (future value) ($13,000)

Po is the original value (unknown)

r is the rate of interest (8%, so 0.08)

n is the number of times compounded/year (365)

t is the number of years (10)

So.... 13,000 = P_o (1 + (.08/365))^(365)(10)

If you multiply the right side of the equation out, then divide the left by that number, that leaves Po = $5,841.79

I hope that helps! That's the basic formula you will need for compound interest problems.