How much would $500 invested at 6% interest compounded monthly be worth after 5 years? round your answer to the nearest cent. a(t)=p(1+r/n)^nt

Step-by-step explanation:

Givens

To solve these type of problems, we need to recur to Interest Compound Formula, which is

Where is the total amount of money after the time compounded, is the principal, is the interest rate, is the number of compounded periods in one year and is time in years.

So,

If the problem states that the interest is compounded monthly, then there are gonna be 12 compounded periods in one year. Replacing all these values, we have

Therefore, the total amount of money after 5 years is $674.42.

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step-by-step explanation: