Final answer:
To calculate the amount of money you will have after two years with a 2% monthly interest rate, you can use the compound interest formula. The final amount will be $731.64.
Step-by-step explanation:
To calculate the amount of money you will have after two years with a 2% monthly interest rate, we can use compound interest formula. The formula is: A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal amount is $700, the interest rate is 2% per month, interest is compounded monthly, and the number of years is 2. Plugging these values into the formula, we get:
A = 700(1+0.02/12)^(12*2)
Simplifying the equation, we have:
A = 700(1+0.00167)^24
A = 700(1.00167)^24
A = 700(1.04234)
A = $731.64.