Question

What is the compound interest on a $10,000 investment that earns 6% compounded monthly for 5 years?

Answer 1

$13,488.50

Explanation:

annual rate 6%

so every month = 6/12 = 0.5%

compounding monthly so every month the money grows at (1+0.5%)

for 5 years, it's 60 months

10,000 * (1+0.5%)^60 = $13,488.50