Answer:
Veronica will have $310.04 at the end of first five years.
Step-by-step explanation:
Principal Amount P = $230
Interest Rate r = 6%
Time t = 5 years
Compounded monthly n = 12
We need to find the future amount (A)
The formula used is: [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Putting values and finding A
[tex]A=P(1+\frac{r}{n})^{nt}\\A=230(1+\frac{0.06}{12})^{5*12}\\A=230(1+0.005)^{60}\\A=230(1.005)^{60}\\A=230(1.348)\\A=310.04[/tex]
So, Veronica will have $310.04 at the end of first five years.
