Answer:
Step-by-step explanation:
This problem is based on compound interest, and the expression for the compound interest is given as
Given Data
A = final amount = ?
P = initial principal balance = $2,500
r = interest rate = 2.1%= 0.021
t = number of time periods elapsed= 14 years
Substituting our data into the compound interest formula we can solve for the final amount
[tex]A= 2500(1+0.021)^1^4\\A= 2500(1.021)^1^4\\A= 2500*1.3377\\A= 3344.25\\[/tex]
Hence to the nearest hundred we have the account balance has $3,000
