Final answer:
To calculate the amount in the account after two years, we can use the formula for the future value of an ordinary annuity. The future value of Anton's account after two years is approximately $31,394.25.
Step-by-step explanation:
To calculate the amount in the account after two years, we need to calculate the future value of the initial deposit and the monthly deposits. The formula for calculating the future value of an ordinary annuity is:
FV = P * [(1 + r)^n - 1] / r
Where:
- FV is the future value
- P is the monthly deposit
- r is the interest rate per period
- n is the number of periods
In this case, the initial deposit is $1250 and the monthly deposit is also $1250. The interest rate is 2.35% per month, which is equivalent to 0.0235 per month. We need to calculate the future value after 2 years, which is equivalent to 24 months.
Using the formula, we have:
FV = 1250 * [(1 + 0.0235)^24 - 1] / 0.0235
Calculating this gives us approximately $31,394.25.