Question

How much would $120 invested at 6% interest compounded monthly be worth after 21 years? Round your answer to the nearest cent.

Answer 1

The formula is
A=p (1+r/k)^kt
A future value?
P present value 120
R interest rate 0.06
K compounded monthly 12
T time 21 years
A=120×(1+0.06÷12)^(12×21)
A=421.72