Final answer:
To calculate the amount of money you will have after depositing $1,000 monthly at a 12% yearly interest rate compounded monthly for five years, use the future value of an annuity formula. The calculation involves determining the monthly interest rate and the total number of deposits to use in the formula.
Step-by-step explanation:
If you deposit $1,000 per month into an account with an annual interest rate of 12% compounded monthly, at the end of five years, you will have accumulated a certain amount of money. To calculate this, we use the future value of an annuity formula: FV = P × ± [((1 + r)^n - 1) / r], where P is the regular deposit amount, r is the monthly interest rate, and n is the total number of deposits.
In this case, ± is $1,000, r is 0.12/12 per month (which is 0.01), and n is 5 years × 12 months, so n = 60. Plugging these into the formula gives us the future value of the investment. Therefore, after 5 years of making monthly deposits, the future value can be calculated to determine how much money will be in the account. The exact step-by-step calculation would involve using this formula with the specific values for P, r, and n.
The final amount is calculated by the formula, and to determine the exact figure, a calculator or a spreadsheet program that can handle the formula for the future value of an annuity would be used.