Question

find the amount that results from each. $50 invested at 6% compounded monthly after a period of 3 years ...?

Answer 1

The compound interest formula:
A = P · ( 1 + r/n ) ^(n t)
where: P = $50, r = 0.06, n = 12, n t = 12 · 3 = 36;
A = 50 · ( 1 + 0.06/12) ^(36) =
= 50 · 1.005^(36) = 59.834 ≈ $59.83