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Joe invests $350 for 5 years at 6% compounded monthly.

User Waffles
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1 Answer

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Final answer:

The investment will grow to approximately $446.97 after 5 years.

Step-by-step explanation:

To calculate compound interest, we can use the formula: A = P(1+r/n)^(nt), where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, Joe invests $350 for 5 years at 6% compounded monthly.

Using the formula, we have A = 350(1+0.06/12)^(12*5)

Simplifying further, A = 350(1+0.005)^(60)

Calculating the exponent, we have A = 350(1.005)^(60)

Using a calculator, we find that A ≈ $446.97. Therefore, the investment will grow to approximately $446.97 after 5 years.

User Bob Rockefeller
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