Final answer:
The future value of a $1 million investment with 6% compounded monthly interest for one year is $1,061,678.40.
Step-by-step explanation:
To calculate the future value of an investment with compounded interest, we can use the formula:
Future Value = Principal x (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods x Number of Years)
For this question, we have a principal of $1,000,000, an interest rate of 6% compounded monthly, and a time period of 1 year. The number of compounding periods per year is 12, since interest is compounded monthly. Plugging these values into the formula, we get:
Future Value = $1,000,000 x (1 + 0.06/12)^(12 x 1) = $1,061,678.40
Therefore, the future value of your investment after one year with interest payments reinvested at 6% is $1,061,678.40.