Answer:
Total amount earned after 25 years=$27,897.16
Step-by-step explanation:
Step 1: Express formula for calculating total amount
The total amount after 25 years can be expressed as;
A=P(1+r)^n
where;
A=total amount after 25 years
P=principal amount
r=annual interest rate
n=number of years
Step 2: Substitute values in the expression
In our case;
P=$6,500
r=6%=6/100=0.06
n=25 years
replacing in the original expression;
A=6,500(1+0.06)^25
A=27,897.16
Total amount earned after 25 years=$27,897.16
