Answer: $4108.87
Step-by-step explanation:
Given : Present value : [tex]P= \$2,000[/tex]
The number of time period : [tex]t=20\text{ years}[/tex]
The rate of interest : [tex]r=3.6\%\ =0.036[/tex]
Let P be the present value of bond .
The formula to calculate the future value is given by :-
[tex]FV=Pe^{rt}[/tex]
[tex]\\\\\Rightarrow\ FV=2000e^{0.036\times20}}\\\\\Rightarrow\ FV=4108.86642129\approx4108.87[/tex]
Hence, the future value of the bond on January 1, 2038 would be $4108.87 .
