Answer:
$ 6581.33 ( approx )
Step-by-step explanation:
Since, future value formula in compound interest is,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where,
P = Principal amount,
r = annual rate,
n = number of compounding periods in a year,
t = number of years,
Here, P = $ 2,000, r = 6% = 0.06, n = 4 ( 1 year = 4 quarters ),
t = 20 years,
Hence, the future value would be,
[tex]A=2000(1+\frac{0.06}{4})^{80}[/tex]
[tex]=2000(1+0.015)^{80}[/tex]
[tex]=2000(1.015)^{80}[/tex]
[tex]=\$ 6581.32557398[/tex]
[tex]\approx \$ 6581.33[/tex]
