Answer: The amount in the account after 10 years is $4019.32
Step-by-step explanation:
The formula for calculating compound interest is expressed as
A = P(1 + r/n)^nt
where
A is the final amount after t years
P is the initial amount deposited
r is the interest rate
t is the number of years
n is the number of compounding periods in a year
From the information given,
P = 2000
r = 7% = 7/100 = 0.07
t = 10
n = 12 because it was compounded monthly
By substituting these values into the formula,
A = 2000(1 + 0.07/12)^12 x 10
A = 2000(1.00583333333)^120
A = 4019.32