Can anyone help with the correct formula I need to plug this into?

Find the principal P that will generate the given future value A, where A=$15,000 at 9% compounded annually for 10 years.

Question

Can anyone help with the correct formula I need to plug this into?

Find the principal P that will generate the given future value A, where A=$15,000 at 9% compounded annually for 10 years.

anonymous · Answer

Compound interest formula

$$A  = P(1+(r/t))^(n*t)$$

anonymous · Answer

...where "A" is the ending amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "n" is the number of compoundings a year, and "t" is the total number of years.

anonymous · Answer

http://www.purplemath.com/modules/expofcns4.htm

anonymous · Answer

Awesome thank you!

anonymous · Answer

Do you need help with creating and solving the equation?

anonymous · Answer

No with the formula in front of me I am getting how to plug everything in to create the equation.  Thanks for the explanations of the variables too.

anonymous · Answer

Your welcome

anonymous · Answer

Ah how would I do it backwards, meaning finding the original Principal given only the Ending Amount?

anonymous · Answer

I just plug it in leaving p as p right?

anonymous · Answer

Yes, you answered your own question. :)

anonymous · Answer

:)

anonymous · Answer

A/(1+(r/t))^(nt) = P