60.7k views
2 votes
How much would $500 invested at 5% interested compounded monthly be worth after 6 years?

User Equalsk
by
7.2k points

2 Answers

2 votes

In 6 years $500 @ 5% comp. monthly will be worth=$674.51

The formula you use to calculate this is: FV=PV(1 + R)^N, where FV=Future value, PV=Present value, R=Interest rate per period, N=Number of periods.


User Kawu
by
7.1k points
4 votes

If you deposit $500 into an account paying 5% annual interest compounded monthly , how much money will be in the account after 6 years?

Result

The amount is $674.53 and the interest is $174.53

User Cmpolis
by
6.4k points