Question

Uta invests an amount into a compound interest investment account that pays 6% a year. After six years, she withdraws her

total balance of $500. Using the formula A - P(1 + r), how much money did Uta initially invest?
$180.00
$320.00
$352.48
$471.70

Answer 1

$352.48

Explanation:

500 = P(1+6/100)^6

500 = P(1.141851912)

P = 500 / 1.1418519112 = 352.48