An investment of $2,500 is made in an account with an annual...

1. Recall the compound interest formula for monthly compounding:

The formula is , where:

is the amount of money accumulated after years, including interest.

is the principal amount (the initial investment). Here, .

is the annual interest rate (in decimal form). Given (9% annual interest rate).

is the number of times interest is compounded per year. Since it's compounded monthly, .

is the number of years. Here, years.

2. Substitute the values into the formula:

First, calculate the value inside the parentheses:

Algebra-1