Answer:
$2,977.54
Step-by-step explanation:
You are going to use the compound interest formula:
<em>P = initial balance</em>
<em>r = interest rate</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, change 6% into the decimal form:
6% -> -> 0.06
Next, lets plug in the values:
Your answer will be $2,977.54