total intrest over 4 yrs + principal = 30,000, int 9% yrly

[liesl246]

I need to figure out the principal.

The total intrest over 4 years plus the principal = 30,000. The interest earned is 9% yearly.

I believe this should be set up Base / Principal but I am not sure.

 

[Deleted member 4993]

Re: Word Problem

I need to figure out the principal. The total intrest over 4 years plus the principal = 30,000. The interest earned is 9% yearly. I believe this should be set up Base / Principal but I am not sure.

Is the interest simple interest or compound interest?

 

[masters]

Re: Word Problem

I need to figure out the principal. The total intrest over 4 years plus the principal = 30,000. The interest earned is 9% yearly. I believe this should be set up Base / Principal but I am not sure.

Hi liesl246,


Use the formula \(\displaystyle A=P+PRT\)

A represents the Principal plus the Interest. Now substitute your values and solve for P.

\(\displaystyle 30000=P+P(.09)(4)\)

 

[Denis]

9% yearly I'm fairly sure means compounded annually; so ye olde PV formula:
P(1.09^4) = 30000; P = 30000 / 1.09^4