Answer:
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited.
t represents the number of years.
From the information given,
P = $500
r = 6% = 6/100 = 0.06
n = 12 because it was compounded 12 times in a year.
An equation that could be used to determine the interest she earns in t years is
A = 500(1+0.06/12)^12 × t
A = 500(1+0.005)^12t
A = 500(1.005)^12t
