Answer:
255.81
Explanation:
We have the formula to calculate the monthly compound interest as following:
[tex]A = P.(1+\frac{r}{n})^{nt} - P[/tex]
In which:
+) A: Amount of compound interest
+) P: Principle, the initial deposit
+) r: the percentage rate
+) n: the number of month (if monthly: n =12, quarterly => n = 3, etc.)
+) t: number of years
From that we have: P = 5,000; r = 5% = 0.05; n = 12 months and t = 1
So that the compound interest monthly for 1 year of 12 months is:
[tex]A = 5000 . (1+\frac{0.05}{12})^{12.1} - 5000 = 255.81[/tex]
So that the answer is 255.81
