Answer: $352.48
Step-by-step explanation:
Hi, to answer this question we have to apply the formula:
A = P (1 + r)^t
Where
A: total balance after invest
P: principal amount invested
r = interest rate (in decimal form)
t = time (years)
Replacing with the values given:
500= P (1+0.06)^6
Solving for P:
500 = P (1.06)^6
500 / ( (1.06)^6)=P
500 / 1.4185 =P
$352.48= P
