To evaluate the initial value we use the formula:
A=P(1+r)^n
where
A=future value
P=principle amount
r=rate
n=time
thus plugging in our values we get:
8996.32=P(1+5.6/100)^4
solving for p we shall have:
8996.32=1.2435P
hence:
P=$7234.5
Thus the initial amount was $7234.5
