Question

Question 6 of 10

How much would $500 invested at 6% interest compounded monthly be
worth after 5 years? Round your answer to the nearest cen
(0) - P(144
A $674,43
B. $886,41
C, 5669.11
D. $512,68

Answer 1

9514 1404 393

Answer:

A. $674.43

Explanation:

The account balance is given by ...

A = P(1 +r/12)^(12t) . . . . . principal P invested at annual rate r for t years

A = $500(1 +0.06/12)^(12·5) = $500(1.005^60)

A ≈ $674.43