Final answer:
To calculate the amount of money someone will have at the end of 20 years with an 8% return on a $6000 annual investment, use the formula for compound interest.
Step-by-step explanation:
To calculate the amount of money someone will have at the end of 20 years with an 8% return on a $6000 annual investment, we can use the formula for compound interest.
The formula is: A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount (initial investment), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years.
In this case, P = $6000, r = 8% or 0.08, n = 1 (assuming the interest is compounded annually), and t = 20.
Plugging these values into the formula, we get: A = 6000(1+0.08/1)^(1*20) = $25,283.77.