Final answer:
To find the amount of money in the account after 14 years, we can use the formula for compound interest. Plugging in the values, the amount would be approximately $6,860 to the nearest ten dollars.
Step-by-step explanation:
To find the amount of money in the account after 14 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money in the account after the specified time period
- P is the principal amount (initial investment)
- r is the annual interest rate (written as a decimal)
- n is the number of times the interest is compounded per year
- t is the number of years
In this case, Carson invested $3,900 with an interest rate of 2.1% compounded monthly, so:
- P = $3,900
- r = 2.1% = 0.021
- n = 12 (compounded monthly)
- t = 14 years
Plugging these values into the formula:
A = $3,900(1 + 0.021/12)^(12*14)
Calculating this equation gives us approximately $6,856.86. Therefore, the amount of money in the account after 14 years would be $6,860 (to the nearest ten dollars).