Answer:
Accumulated amount will be $2504.90.
Step-by-step explanation:
Formula that represents the accumulated amount after t years is
A = [tex]A_{0}(1+\frac{r}{n})^{nt}[/tex]
Where A = Accumulated amount
[tex]A_{0}[/tex] = Initial amount
r = rate of interest
n = number of times initial amount compounded in a year
t = duration of investment in years
Now the values given in this question are
[tex]A_{0}[/tex] = $1000
n = 12
r = 4.6% = 0.046
t = 20 years
By putting values in the formula
A = [tex]1000(1+\frac{0.046}{12})^{240}[/tex]
= [tex]1000(1+0.003833)^{240}[/tex]
= [tex]1000(1.003833)^{240}[/tex]
= 1000×2.50488
= 2504.88 ≈ $2504.90
Therefore, accumulated amount will be $2504.90.
