A total of $120 is invested monthly with an annual compound interest rate of 6%, compounded monthly. Which of the following calculations explains how you can find the principal amount at the beginning of the second month?(1 point)

Responses

120(1+0.06)+120

120(1+0.005)+120

120⋅2

120(1+0.005)^2

The correct calculation to find the principal amount at the beginning of the second month is 120(1+0.005)+120.