Answer:
Interest Earned = $1958
Value of total investment - $6490
Step-by-step explanation:
We can solve for both the questions by using the formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where,
A is the future amount (original PLUS interest)
P is the initial amount
r is the rate of interest
n is the number of times interest is compounded per year
t is the time in years
For out problem, P = 4532, r is 0.06 (6%), n is 12 (since monthly compounding in 1 year), t = 6. Plugging these into the equation, we get A (the future amount).
[tex]A=P(1+\frac{r}{n})^{nt}\\A=4532(1+\frac{0.06}{12})^{(12)(6)}\\A=4532(1.005)^{72}\\A=6490[/tex]
This is the amount including interest. Hence,
Interest earned = 6490 - 4532 = $1958
Your total investment would be A, which is $6490
