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) Superscript t, how much money did Uta initially invest?

$180.00

$320.00

$352.48

$471.70

352.48

Answer: $352.48

Step-by-step explanation:

Hi, to answer this question we have to apply the formula:

A = P (1 + r) ^t

Where

A: total balance after invest

P: principal amount invested

r = interest rate (in decimal form)

t = time (years)

Replacing with the values given:

500 = P (1+0.06) ^6

Solving for P:

500 = P (1.06) ^6

500 / ((1.06) ^6) = P

500 / 1.4185 = P

$352.48 = P