Question

How much would $500 invested at 6% interest compounded monthly be worth after 5 years

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 500\\ r=rate\to 6\%\to \frac{6}{100}\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\to &12\\ t=years\to &5 \end{cases} \\\\\\ A=500\left(1+\frac{0.06}{12}\right)^{12\cdot 5}\implies A=500(1.005)^{60}\implies A\approx 674.42508$