Answer:
$6,414.271
Explanation:
Principal ( Initial deposit) = $2,000
Interest rate = 6% annually = 6/100 = 0.06
Period (Time ) = 20 years.
Number of times it earned (n) = annually (yearly)
Formula to be used =
A = P( 1 + r/n)^nt
A = $2,000( 1 + 0.06/1) ^ 1×20
A = $2,000(1.06) ^20
A = $6,414.271
The total amount on investment in 20 years = $6,414.271
