Answer:
[tex][/tex] Result: $100,000 (1 + 0.06/12)¹²⁵ ≈ $133,823.35
Steps: I used the formula for compound interest A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.
Extra information: The annual interest rate is 6%, compounded monthly.
Distribution ratio: The compound interest formula assumes that the interest is compounded at regular intervals.
