Answer:
$105,477.02
Step-by-step explanation:
To solve this problem, we need to use a modified version of the compound interest formula:
[tex]P=A/(1}+\frac{r}{n})^{nt}[/tex]
A = total balance
r = interest rate
n = number of times compounded annually
t = time
First, change 4% to its decimal form:
4% -> [tex]\frac{4}{100}[/tex] -> 0.04
Now, plug in the values:
[tex]P=192,000/(1+\frac{0.04}{12})^{12(15)}[/tex]
[tex]P=105,477.02[/tex]
The principal was $105,477.02
