Answer:
$5,909.97
Step-by-step explanation:
We will use the compound interest formula for this problem as shown below:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 3.6% into a decimal:
3.6% -> [tex]\frac{3.6}{100}[/tex] -> 0.036
Now plug in the values:
[tex]A=5,500(1+\frac{0.036}{12})^{12(2)}[/tex]
[tex]A=5,909.97[/tex]
After 2 years, the balance would be $5,909.97
