We need to find the principal amount on an interest rate of 13% where the end of year payment is $5043.71.
The original amount is [tex]\$15002.37[/tex].
i = Interest rate = 13%
n = Compounding period = 4 years
E = End of year payment = $5043.71
The required formula is
[tex]P=\dfrac{E[1-(1+i)^{-n}]}{i}\\\Rightarrow P=\dfrac{5043.71[1-(1+0.13)^{-4}]}{0.13}\\\Rightarrow P=\$15002.37[/tex]
The original principal amount was [tex]\$15002.37[/tex].
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