Anny invests $3500 at %6 compounded monthly for 1 year
.06/12 = .005 = interest rate/month
so multiply by 1.005 every month for 12 months
3500 * 1.005^12 = 3715.87
To calculate the amount of money Anny will have after investing $3500 at a 6% annual interest rate compounded monthly for 1 year, you can use the formula for compound interest:
A = P(1 + (r/n))^(nt)
Where:
A = the final amount of money accumulated
P = the principal amount (the initial investment)
r = the annual interest rate (expressed as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
In this case, Anny's principal amount is $3500, the annual interest rate is 6% (or 0.06 as a decimal), interest is compounded monthly (so n = 12), and Anny is investing for 1 year (so t = 1).
Plugging in these values into the formula:
A = 3500(1 + (0.06/12))^(12 * 1)
Simplifying the expression:
A = 3500(1 + 0.005)^(12)
Calculating the exponent:
A = 3500(1.005)^(12)
Calculating (1.005)^(12):
A ≈ 3500(1.06167823751)
Calculating the final amount:
A ≈ $3716.37
Therefore, after 1 year, Anny will have approximately $3716.37 from her investment of $3500 at a 6% interest rate compounded monthly.