Answer:
[tex]\$5,586.42[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=6\ years\\ A=\$8,000\\ r=0.06\\n=12[/tex]
substitute in the formula above
[tex]8,000=P(1+\frac{0.06}{12})^{12*6}[/tex]
[tex]8,000=P(1.005)^{72}[/tex]
[tex]P=8,000/(1.005)^{72}[/tex]
[tex]P=\$5,586.42[/tex]
