We know that
• The period of time is 7 years.
,• The interest is 11% compounded monthly.
,• The current balance is 500.
We have to use the compound interest formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Replacing the given information, we have.
[tex]500=P(1+\frac{0.11}{12})^{12(7)}[/tex]Then, we solve for P.
[tex]\begin{gathered} 500=P(1+0.0092)^{84} \\ 500=P(1.0092)^{84} \\ 500=P(2.16) \\ P=\frac{500}{2.16} \\ P\approx231.48 \end{gathered}[/tex]