Your question is about calculating the future value of an investment. Let's start by defining the terms:
1. Principal: $6,200 is your initial deposit.
2. Rate of interest: 8.4% is your annual interest rate.
3. Compounding period: Monthly interest compounding means that your interest is calculated and added to your account on a monthly basis.
4. N: The number of full years (12 months) that you plan to hold your investment.
To calculate the future value of your investment after N years, we can use the formula:
Future Value = Present Value x (1 + r/12)^N
Let's use this formula to compute your future value:
Future Value = $6200 x (1 + 0.084/12)^12 = $7,473.15
This means that after 12 years (12 months x 12 full years), your investment will be worth $7,473.15.
