Answer:
[tex][/tex] You can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money in the account after the specified time period
P = the principal amount (initial deposit) = $5000
r = the annual interest rate = 2% or 0.02
n = the number of times the interest is compounded per year = 12 (monthly compounding)
t = the number of years = 10
Plugging in these values:
A = $5000(1 + 0.02/12)¹²¹⁰
A = $5000(1 + 0.00166667)¹²⁰
A = $5000(1.00166667)¹²⁰
A = $5000 × 1.221386
A = $6106.93
Therefore, after 10 years with monthly compounding interest at a rate of 2%, there will be approximately $6106.93 in the account.
