# Use the compound interest formula A = P(1 + i)n to find the indicated values A = \$6,000; i = 0.03; n = 24; P =?

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Use the compound interest formula A = P(1 + i)n to find the indicated values A = \$6,000; = 0.03; n = 24; P =?

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Step 1

Compounded Interest:

It is the method for computing interest at the initial amount of principal which includes the previous period’s accumulated interest. It can be compounded annually, half-yearly, quarterly and daily. The rate of compounding interest depends on the frequency of compounding.

Step 2

Given,

Amount (A) = \$6,000

Interest Rate (i) = 0.03

Number of times compounded (n... help_outlineImage TranscriptioncloseAmount (A) Principal Amount (P) (1Interest Rate (i)) \$6,000 (1 0.03) \$6,000 (1.03) \$6, 000 2.03279411 = \$2951.60 fullscreen

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