Answer:the amount of the initial investment was $4165
Step-by-step explanation:
Let P represent the Initial amount of money invested. This means that the principal is P
It was compounded 3 times in a year. So
n = 3
The rate at which the principal was compounded is 4.61%. So
r = 4.61/100 = 0.0461
It was compounded for 6 years. So
t = 6
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. After 6 years, the balance reaches $5485.85. It means that
A = 5485.85
Therefore
5485.85 = P(1+0.0461/3)^3 × 6
5485.85 = P(1.0154)^18
P = 5485.85/1.317 = 4165.4
