We use future value formula:
[tex]FV=P(1+r)^t[/tex]Where
FV is future amount
P is principal amount
r is rate of interest, in decimal
t is time
Given,
P = 2200
since compounded monthyl, we find the monthly interest rate,
4.2% = 0.042 per year, so monthly:
0.042/12 = 0.0035
t = 2 years, but in months, that is: 2 * 12 = 24 months
Now, let's plug in and solve:
[tex]\begin{gathered} FV=P(1+r)^t \\ FV=2200(1+0.0035)^{24} \\ FV=2200(1.0035)^{24} \\ FV=2392.43 \end{gathered}[/tex]