When $70 is invested monthly with an annual compound interest rate of 12% interest, compounded monthly, what is the total amount of the investment at the end of the second month? Round the answer to two decimal places as needed.(1 point)

Question

The total amount of the investment at the end of the second month is $.

Answer 1

To calculate the total amount of the investment at the end of the second month, we need to add the interest earned to the initial investment.

After the first month, the investment would grow by 12% of $70, which is $8.40. This would bring the total amount of the investment to $70 + $8.40 = $78.40.

So, at the beginning of the second month, the investment is $78.40.

Again, after the second month, the investment would grow by 12% of $78.40, which is $9.41. Adding this to the previous balance, the total amount of the investment at the end of the second month is $78.40 + $9.41 = $87.81.

Therefore, the total amount of the investment at the end of the second month is $87.81.