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Alona [7]
3 years ago
7

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

ege from which the has earned interest for 20 years. How much will the college receive? round to the nearest tenth
Mathematics
1 answer:
maw [93]3 years ago
7 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

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