a philanthropist deposits 2,000$, in a trust fund that pays 6.0%interest , compunded continuously. The balance given to the coll

Question

3 years ago

8

ege from which the has earned interest for 20 years. How much will the college receive? round to the nearest tenth

1 answer:

attashe74 [19] · Answer 1 · 2022-12-08T05:54:02+03:00

6 0

Answer:

$6414

Step-by-step explanation:

Step one

given

Principal=$2,000

rate= 6%= 0.06

Time= 20 years

Required

The final amount.

Step two:

The compound interest formula is

A= P(1+r)^t

substituting we have

$A=2000(1+0.06)^2^0\\\\ A= 2000(1.06)^2^0\\\\ A=2000*3.207\\\\A=6414$

The amount given to the college is $6414