$1025.26
5% compounded each month is [tex]\frac{5}{12}\%[/tex] per month.
After 6 months, this is total interest of [tex](1+\frac{5}{12}\%)^6-1=1.025262-1=.025262=2.5262\%[/tex] by the compound interest formula. Applying this to the original deposit, this gives $1025.26 to the nearest cent.
Given
Compound formula
A = P (1 + r/n)^ (nt)
P: principle (amount started with)
r/n: Interest rate
nt: time
1000(1 + .05/12)^6 = $1025.26
Answer
There are $1025.26 dollars in the account after 6 months.
