Question

You deposit # 100 in a savings account that earns 6% annual interest compounded monthly. What

the balance after 5 years.

Answer 1

$134.89.

Explanation:

Monthly interest = 0.06/12 and its for 5*12 months.

Amount after 5 years = 100(1 + 0.06/12)^(5*12)

= 100(1 + 0.06/12)^60

= $134.89