$425 is invested into an account that earns 6% compounded monthly. Find how much the account is worth in 15 years.

Future Balance

$1,044

Step-by-step explanation:

Compound interest is simple- It’s the interest you earn on both your original deposit and on the interest that your money earns. Compound interest allows your savings to grow faster over time.  In an account that pays interest, the earnings are typically added to the original principal at the end of every compounding period. That's often daily or monthly. Each time interest is calculated and added to the account, the larger balance results in more interest earned than before. This is what’s meant by compound interest. Note that high-interest savings accounts earn money faster than accounts with lower yields.