Answer:
$31,341.81
Step-by-step explanation:
The compound amount equation is A = P(1 + r/n)^(nt), where P is the unknown principal, r is the annual interest rate, n is the number of compounding periods per year and t is the number of years. We want to solve this for P:
A
------------------- = P
(1 + r/n)^(nt)
Substituting the given numerical values;
$45,000
--------------------------- = P
(1+0.073/4)^(4*5)
Using a calculator, we evaluate this expression, obtaining: $31,341.81
