Answer:
The principal is $15123.75
Step-by-step explanation:
To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
A=$20500 , r=5.2% , n=1 and t=6 years
After plugging the given information we have
205002050020500PP=P(1+0.0521)1⋅6=P⋅1.0526=P⋅1.355484=205001.355484=15123.75
