Question

How much would $120 invested at 6% interest compounded monthly be

worth after 21 years? Round your answer to the nearest cent.
A(t)= P(1+r/n)^nt

Answer 1

$421.72

Explanation:

Compounded Monthly Interest Rate Formula: A = P(1 + 4/12)^12t

Simply plug in our known variables:

A = 120(1 + 0.06/12)²¹⁽¹²⁾

A = 120(1.005)²⁵²

A = 120(3.51437)

A = 421.724