Answer:
$70,201.38
Step-by-step explanation:
To determine the principal amount, we can use the formula:
[tex]P=\dfrac{A}{(1+\frac{r}{n})^{nt}}[/tex]
A = $200,000
r = 7% or 0.07
t = 15 years
n = 12
Now let's substitute our values.
[tex]P=\dfrac{200,000}{(1+\frac{0.07}{12})^{12(15)}}[/tex]
[tex]P=\dfrac{200,000}{(1.00583333333)^{12(15)}}[/tex]
[tex]P=70,201.38[/tex]
So the principal needed to get 200,000 in 15 years is $70,201.38.
