Answer:
We get the value of Principal amount i.e initial investment = $61640
Step-by-step explanation:
Interest rate r = 3.59% or 0.0359
Compounded quarterly n = 4
Future Amount A = 117,300
Time t = 18 years
We need to find initial investment i,e Principal Amount P
The formula used is: [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Putting values and finding P
[tex]A=P(1+\frac{r}{n})^{nt}\\117300=P(1+\frac{0.0359}{4})^{4*18} \\117300=P(1+0.008975)^{72}\\117300=P(1.008975)^{72}\\117300=P(1.903)\\P=\frac{117300}{1.903}\\P=61640[/tex]
So, We get the value of Principal amount i.e initial investment = $61640
