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)

Answer 1

We can use the formula $A = P(1 + r/n)^{nt}$ to find the total amount of the investment at the end of the second month, where:
$A$ is the total amount of the investment,
$P$ is the monthly investment amount,
$r$ is the annual interest rate,
$n$ is the number of times interest is compounded in a year, and
$t$ is the number of years.

In this case, $P = 70$, $r = 0.12$, $n = 12$ (since the interest is compounded monthly), and $t = \frac{2}{12}$ (since the investment is for 2 months).

Plugging in these values, we get:
$A = 70(1 + \frac{0.12}{12})^{12 \cdot \frac{2}{12}}$

Simplifying further, we have:
$A = 70(1 + 0.01)^{2}$

$A = 70(1.01)^{2}$

Using a calculator, we find:
$A \approx \boxed{70.49}$