If you invest $4532 at 6% interest that is compounded monthly for 6 years what is the interest you earned? What would your total investment be?

Answer:Interest Earned = $1958Value of total investment - $6490Step-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 amountr is the rate of interest n is the number of times interest is compounded per yeart is the time in yearsFor 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 = $1958Your total investment would be A, which is $6490