Answer:
$745.45
Explanation:
The expression that describes the future value of an investment (P) at an annual rate (r) for a period of n years, compounded annually is:
[tex]FV = P*(1+r)^n[/tex]
If the future value of an investment is $1,500 after 12 years at a rate of 6%, the present value (P) is:
[tex]1500 = P*(1+0.06)^{12}\\P=\$745.45[/tex]
The investment is worth $745.45 today.
