Final answer:
To calculate the value of Carol's investment in 2 years, we can use the formula for compound interest: A = P(1+r/n)^(nt). In this case, Carol invested $44,900 at an annual interest rate of 20% compounded monthly, so r = 0.20, n = 12, and t = 2.
Step-by-step explanation:
To calculate the value of Carol's investment in 2 years, we can use the formula for compound interest:
A = P(1+r/n)^(nt)
Where:
- A is the future value of the investment
- P is the principal amount (initial investment)
- r is the annual interest rate (in decimal form)
- n is the number of times the interest is compounded per year
- t is the number of years
In this case, Carol invested $44,900 at an annual interest rate of 20% compounded monthly, so r = 0.20, n = 12, and t = 2. Plugging in these values into the formula:
A = 44,900(1+0.20/12)^(12*2)
Calculating this will give us the value of Carol's investment in 2 years.