Answer:
Option C - $352.48
Step-by-step explanation:
Given : 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.
To find : How much money did Uta initially invest?
Solution :
Using compound interest formula,
[tex]A=P(1+r)^t[/tex]
Where A is the amount A=500
P is the principle
r is the rate r=6%=0.06
t is the time t= 6 years
Substitute the value,
[tex]A=P(1+r)^t[/tex]
[tex]500=P(1+0.06)^6[/tex]
[tex]500=P\times 1.418[/tex]
[tex]P=\frac{500}{1.418}[/tex]
[tex]P=\$352.48[/tex]
Therefore, Option C - Uta initially invest $352.48
