Final answer:
Mary will have approximately $2,655.70 in 4 years.
Step-by-step explanation:
To find out how much money Mary will have in 4 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money after the specified time period
- P is the principal amount (initial deposit)
- r is the annual interest rate (in decimal form)
- n is the number of times the interest is compounded per year
- t is the time period in years
Given:
- P = $2500
- r = 2.3% = 0.023
- n = 12 (compounded monthly)
- t = 4
Using the formula, we can calculate the amount:
A = 2500(1 + 0.023/12)^(12*4)
A ≈ $2,655.70.