Answer: $12,044
Explanation:
Compound interest/Formula
A=P (1 + r/n) ^ nt
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed (years)
Where A=42000, P=?, r=7%, n= 4 times, t=18
42000= P (1 + 0.07/4)^4(18)
42000= P (1 + 0.0175)^72
42000= P(1.0175)^72
42000=P(3.4872)
Divide both sides by 3.4872 to make P the subject of the formula
P=$12,044
