Question
In the formula \( A=6,000\left(1+\frac{0.14}{12}\right)^{(12)}(2) \), the principle amount is: \( \$ 1400 \) \( \$ 3000 \) \( \$ 6000 \) \( \$ 1200 \)
Ask by Mccarthy Floyd. in the United States
Jan 25,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The principal amount is \$6,000.
Solution
To identify the principal amount in the formula \( A=6,000\left(1+\frac{0.14}{12}\right)^{(12)}(2) \), we need to analyze the formula itself.
In this formula:
- \( A \) represents the total amount after interest.
- The term \( 6,000 \) is the initial principal amount (the amount of money that is invested or borrowed).
Thus, the principal amount in this formula is \( 6,000 \).
Now, let's look at the options provided:
- \( \$ 1400 \)
- \( \$ 3000 \)
- \( \$ 6000 \)
- \( \$ 1200 \)
The correct answer is \( \$ 6000 \).
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Bonus Knowledge
The principal amount in the formula represents the initial sum of money that is being invested or loaned. In this case, you can easily spot it as the coefficient in front of the parentheses. That means the principal amount here is a clear \( \$ 6,000 \). When dealing with formulas like this, it's common to see the principal highlighted prominently. Just remember, the principal is always the amount before any interest calculations come into play! Keep that in mind for future finance equations, and you’ll always know where to look for the starting point.
