Answer:
$6,911.92
Step-by-step explanation:
Given the following
Amount A = $12,100
Time t = 8yrs
Rate r = 7.25%
Required
Principal P
Using the compound interest formula;
A = P(1+r)^n
12,100 = P(1+0.0725)^8
12,100 = P(1.0725)^8
12100 = 1.7506P
P = 12,100/1.7506
P = 6,911.92
Hence the amount invested would have been $6,911.92
