Answer
$P \approx \$8,917.20$
Work Step by Step
RECALL:
The formula for the future value $A$ is:
$A=P(1+rt)$
where
P = principal amount borrowed
r = interest rate per year
t = time in years
Divide $(1+rt)$ on both sides of the formula given above to obtain:
$\dfrac{A}{1+rt}=P$
Thus, the principal or present value $P$ can be found using the formula above.
Use the formula above and the given values in the problem to obtain:
$P=\dfrac{\$14000}{1+9.5\% \cdot 6}
\\P=\dfrac{\$14000}{1+0.095 \cdot 6}
\\P=\dfrac{\$14000}{1+0.57}
\\P=\dfrac{\$14000}{1.57}
\\P=\$8,917.197452
\\P \approx \$8,917.20$
