Answer:
Answer: (C) $2,518.59.
Explanation:
To find the amount of money you will have in the account after 2 years, we can use the formula for the future value of an annuity:
FV = P * (((1 + r/n)^(nt) - 1) / (r/n))
where:
FV = the future value of the annuity
P = the monthly payment, which is $100
r = the annual interest rate, which is 4% expressed as a decimal (0.04)
n = the number of times the interest is compounded in a year, which is 12 (monthly)
t = the time the money is invested for, which is 2 years
Substituting the given values into the formula, we get:
FV = 100 * (((1 + 0.04/12)^(12*2) - 1) / (0.04/12))
FV = 100 * (((1.00333333333)^24 - 1) / (0.00333333333))
FV = 2,518.59 (rounded to the nearest cent)
Therefore, you will have $2,518.59 in the account after 2 years. Answer: (C) $2,518.59.