Answer:
[tex]\$923.36[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=1\ year\\ A=\$1,000\\ r=0.08\\n=12[/tex]
substitute in the formula above and solve for P
[tex]\$1,000=P(1+\frac{0.08}{12})^{12*1}[/tex]
[tex]P=\$1,000/(1+\frac{0.08}{12})^{12*1}=\$923.36[/tex]
