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(1+0.06)+120
120(1+0.005)+120
120⋅2
120(1+0.005)^2
1 answer
The correct calculation to find the principal amount at the beginning of the second month is 120(1+0.005)+120.