Answer: the initial amount is $941.6
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
A = $1000
r = 1% = 1/100 = 0.01
n = 12 because it was compounded 12 times in a year.
t = 6 years
Therefore,.
1000 = P(1 + 0.01/12)^12 × 6
1000 = P(1 + 0.00083)^72
1000 = P(1.00083)^72
1000 = 1.062P
P = 1000/1.062
P = $941.6
