Final answer:
To find the amount accumulated in 10 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt). Plugging in the values, the Munsons will have accumulated approximately $5,725.74 in 10 years.
Step-by-step explanation:
To find the amount accumulated in 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where A is the accumulated amount, P is the principal (initial deposit), r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, the principal is $2,100, the annual interest rate is 8% (or 0.08), the number of times the interest is compounded per year is 1, and the number of years is 10.
Plugging in these values, we have:
A = 2100(1 + 0.08/1)^(1*10)
Simplifying, we get:
A = 2100(1.08)^10
Calculating this, we find that the Munsons will have accumulated approximately $5,725.74 in 10 years.