To find the balance after 5 years in a savings account that earns 6% interest compounded monthly, we need to use the formula for compound interest:
A = P * (1 + r/n)^(nt)
where:
A = final amount
P = initial deposit (principal) = $10,000
r = annual interest rate = 6%
n = number of times interest is compounded per year = 12
t = time in years = 5
Plugging in the values:
A = $10,000 * (1 + 0.06/12)^(12 * 5)
A = $10,000 * (1 + 0.005)^60
A = $10,000 * 1.953126
A = $19,531.26
So, after 5 years, the balance in the savings account would be $19,531.26