Solution:
Given that;
[tex]\begin{gathered} Principal=P=\text{ \$500} \\ rate=r=\frac{6}{100}=0.06 \\ time=t=\text{ 5 years} \end{gathered}[/tex]
To find the amount in 5 years, we will apply the compound interest formula below
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ Since,\text{ it is compounded montly, n = 12} \end{gathered}[/tex]
Substitute the values of the variables into the formula above
[tex]\begin{gathered} A=500(1+\frac{0.06}{12})^{(5\times12)}=500\left(1+\frac{0.06}{12}\right)^{60}=674.42507 \\ A=\text{ \$}674.43\text{ \lparen nearest cent\rparen} \end{gathered}[/tex]
Hence, the answer is B
