The amount that results when $2,000 is compounded at 8% annually over six years
P = Po(1*r)^n
P=2000(1.08)^6 = 2000*1.08^6 = $3173.75.
To calculate the amount that results when $2,000 is compounded at 8% annually over six years, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal (initial) amount
r is the annual interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years
In this case, P = $2,000, r = 8% (or 0.08), n = 1 (compounded annually), and t = 6.
Plugging in the values into the formula, we get:
A = 2000(1 + 0.08/1)^(1*6)
A = 2000(1.08)^6
A = 2000 * 1.593848
A ≈ $3,187.70
So, the amount that results when $2,000 is compounded at 8% annually over six years is approximately $3,187.70.