Answer:
$4928.00
Step-by-step explanation:
This question is solved by the compound interest formula:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
In which A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this problem, we have that:
Nicole deposited $4400, so [tex]P = 4400[/tex]
6% compounded monthly, which means that [tex]r = 0.06, n = 12[/tex]
How much will she have in her account in two years?
This is A when [tex]t = 2[/tex].
So
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A = 4400(1 + \frac{0.06}{12})^{12*2}[/tex]
[tex]A = 4959.50[/tex]
So the correct answer is:
$4928.00
