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+0.005)+120
120 left parenthesis 1 plus 0.005 right parenthesis plus 120
120(1+0.06)+120
120 left parenthesis 1 plus 0.06 right parenthesis plus 120
120⋅2
120 times 2
120(1+0.005)2
120 left parenthesis 1 plus 0.005 right parenthesis squared