Answer:
He has to invest $16,803.32 so that the investment will be worth $27,000 in six years with a 7.6% interest rate.
Explanation:
Year 6: 27,000
Year 5: 27,000 - (27,000 x 7.6 / 100) = 27,000 - 2,052 = $24,948
Year 4: 24,948 - (24,948 x 7.6 / 100) = 24,948 - 1,896.05 = $23,051.95
Year 3: 23,051.95 - (23,051.95 x 7.6 / 100) = 23,051.95 - 1,751.95 = $21,300
Year 2: 21,300 - (21,300 x 7.6 / 100) = 21,300 - 1,618.80 = $19,681.20
Year 1: 19,681.20 - (19,681.20 x 7.6 / 100) = 19,681.20 - 1,495.77 = $18,185.42
Year 0: 18,185.42 - (18,185.42 x 7.6 / 100) = 18,185.42 - 1,382.10 = $16,803.32
