Answer:
$8017.84
Step-by-step explanation:
Because it is compounded annually, you have to use the formula
A= P(1+r)^t
(A is the future balance after t years, r is the % rate as a decimal, P is the starting amount -- the principal.)
So,
A = 2500(1 + 0.06)^20 (First, add inside the parentheses)
A = 2500(1.06)^20 (Then, do the exponent and the multiplication with a calculator)
A = 8017.84
