A client invested $20,000 at 12% for 5 years. At the end of the 5 years, the investment had earned $12,000 in interest. What is the principal in this scenario?

Question

A client invested $20,000 at 12% for 5 years. At the end of the 5 years, the investment had earned $12,000 in interest. What is the principal in this scenario?
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Solution 1

To determine the principal in this scenario, we can follow these steps:

  1. Identify the given information:

    • Total investment amount: $20,000
    • Annual interest rate: 12%
    • Investment duration: 5 years
    • Total interest earned: $12,000

  2. **Understand the relationship between princip Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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