Answer:
$5,211.30
Step-by-step explanation:
We have to calculate compound interest with the formula [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where A = Amount after maturity
P = Principal amount ( $4,000)
r = Rate of interest 13.3% in decimal ( 0.133)
n = number of compounding period, monthly ( 12 )
t = Time in years ( 2 )
Now we put the values in the formula
[tex]A=4,000(1+\frac{0.133}{12})^{(12\times 2)}[/tex]
[tex]A=4,000(1+0.0110833)^{(24)}[/tex]
[tex]A=4,000\times 1.0110833^{24}[/tex]
[tex]A=4,000\times 1.3028262297[/tex]
A = $5,211.30
After 2 years investment would be $5,211.30.
