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Answer:
[tex]\text{ROI}=\$256.908[/tex]Explanation: The investment of $6,000 earns an annual interest rate of 4.2% and is compounded monthly: this problem can be solved using the compound interest formula, which is as follows:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt}-P\Rightarrow(1) \\ P=\$6000 \\ r=0.42 \\ n=12 \\ t=1 \end{gathered}[/tex]By plugging this information in equation (1), we get the answer as follows:
[tex]\begin{gathered} A=(6000)\cdot(1+\frac{0.042}{12})^{(12)\cdot(1)}-(6000) \\ A=(6000)\cdot(1.0035)^{12}-(6000) \\ A=(6000)\cdot(1.043)-6000 \\ A=\$(6,256.908-6000) \\ A=\$256.908 \\ \therefore\Rightarrow \\ \text{ROI}=A=\$256.908 \end{gathered}[/tex]
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