Initial Investment 05631B
1. The problem asks to find the initial investment amount given a final amount of 13288.09 after 11 years with an interest rate of 6%.
2. We assume the interest is compounded annually and use the compound interest formula:
$$A = P(1 + r)^t$$
where $A$ is the final amount, $P$ is the principal (initial investment), $r$ is the annual interest rate as a decimal, and $t$ is the time in years.
3. Substitute the known values:
$$13288.09 = P(1 + 0.06)^{11}$$
4. Simplify the expression inside the parentheses:
$$13288.09 = P(1.06)^{11}$$
5. Calculate $(1.06)^{11}$:
$$1.06^{11} \approx 1.8983$$
6. Solve for $P$:
$$P = \frac{13288.09}{1.8983} \approx 7000$$
7. Therefore, Archie initially invested approximately 7000 to the nearest 1.