Question 62743
<b>Suppose $500 is invested at 6.5% interest, compounded monthly. How much is the investment worth after 10 years? Round to the nearest cent.</b>

6.5% per year = 6.5%/12 = .54166666666% = .00541666666 per month. 
10 years of investment = 10*12 = 120 months.

So, the formula we use is Value after 10 years = {{{500*(1.0054166666)^120}}}
We use a calculator and get {{{500*1.91218375}}} = {{{highlight(956.09)}}}.