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⋅2 120 times 2 120(1+0.06)+120 120 left parenthesis 1 plus 0.06 right parenthesis plus 120 120(1+0.005)2 120 left parenthesis 1 plus 0.005 right parenthesis squared 120(1+0.005)+120
The correct calculation to find the principal amount at the beginning of the second month would be:
$120(1+0.005) = $120(1.005) = $120.60
So, the correct option is 120(1+0.005)