Answer:
Initial investment= $12,055.22
Step-by-step explanation:
Giving the following information:
Future Value (FV)= $16,860
Number of periods (n)= 6 years
Interest rate (i)= 5.75% = 0.0575
To calculate the initial investment (PV), we need to use the following formula:
PV= FV / (1 + i)^n
PV= 16,860 / (1.0575^6)
PV= $12,055.22