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
[tex]A=2000(1+0.06)^2^0\\\\ A= 2000(1.06)^2^0\\\\ A=2000*3.207\\\\A=6414[/tex]
The amount given to the college is $6414
