Final answer:
To find the accumulated amount of an investment of $2500 for 10 years at 4.3% compounded monthly, use the formula for compound interest: A = P(1 + r/n)^(nt).
Step-by-step explanation:
To find the accumulated amount of an investment of $2500 for 10 years at 4.3% compounded monthly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the accumulated amount
- P is the principal amount ($2500)
- r is the annual interest rate (4.3%)
- n is the number of times the interest is compounded per year (12 since it is compounded monthly)
- t is the number of years (10)
Plugging in the values into the formula, we have:
A = 2500(1 + 0.043/12)^(12*10)
Simplifying the expression, we find that the accumulated amount is approximately $3,938.47.