6\ An investment of a certain amount of money was made at an interest rate of 4.75% per year compounded annually. If the compounded amount after 8 years was OMR (342093.05). Find the principal amount.
6\ An investment of a certain amount of money was made at an interest rate of 4.75% per year compounded annually. If the compounded amount after 8 years was OMR (342093.05). Find the principal amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6\ An investment of a certain amount of money was made at an interest rate of 4.75%
per year compounded annually. If the compounded amount after 8 years was OMR
(342093.05). Find the principal amount.
Expert Solution
Step 1
To find out the principal amount, apply formula:
A= P (1+r)n
where,
A = Compounded amount
P = Principal
r = rate of interest
n = time period
Given:
Interest Rate (r) = 4.75 %
time period (n) = 8 years
Compounded Amount (A) = OMR 342093.05
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education