You deposit $5000 in an account earning 6% interest compounded monthly. How much will you have in the account in 5 years?

Answer 1

A=5000(1+.06/12)^12(5)

= 5000(1.005)^60

=$6,744.25

general formula is

A=P(1+r/n)^nt

where t= years= 5, n=number of compounding periods per year = 12 for monthly

r = interest rate = 6% = .06

P= starting amount = 5000

A = ending Amount