Question

How much would $500 invested at 6% interest compounded monthly be worth after 5 years

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$500\\ r=rate\to 6\%\to (6)/(100)\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\to &12\\ t=years\to &5 \end{cases} \\\\\\ A=500\left(1+(0.06)/(12)\right)^(12\cdot 5)\implies A=500(1.005)^(60)\implies A\approx 674.42508`