What initial investment must be made to accumulate $6 in 17 years if the money is invested in a mutual fund that pays 12% annual interest, compounded monthly?

$7881.18

Step-by-step explanation:

   Let the initial Investment be . The Interest is compounded on a monthly basis at 12% annual interest rate. After 17 years, the Investment amounts to $60,000.

   As the annual interest rate is 12%, the monthly interest rate is 1%.

Since this is a compound interest problem, the total amount can be modeled as follows:

Here is the interest rate, i.e , and t is the number of time periods, i.e =

∴ Initial Investment = $7881.18

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step-by-step explanation:

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