Viktor deposits $4,300 in an account that carns 6% interest compounded monthly.
How much is in the account after five years?

Viktor will have $5,800 in his account after 5 years

Step-by-step explanation:

Compound Interest

It happens when interest in the next period is then earned on the principal sum plus previously accumulated interest.

The formula is:

Where:

A=final amount

P=initial principal balance

r=interest rate

n=number of times interest applied per time period

t=number of time periods elapsed

Viktor deposits P=$4,300 in an account that earns r=6% interest compounded monthly. Since there are 12 months in a year, n=12. The interest rate is converted to decimal: r=6/100=0.06. The final amount in the account after t=5 years is:

Calculating:

A = $5,800

Viktor will have $5,800 in his account after 5 years