Final answer:
To calculate the total amount after 6 years of a $20,000 investment with a 5.2% interest rate compounded daily, you can use the compound interest formula A = P(1+r/n)^(nt).
Step-by-step explanation:
To calculate the total amount after 6 years of a $20,000 investment with a 5.2% interest rate compounded daily, we can use the compound interest formula. The formula is:
A = P(1+r/n)^(nt)
Where:
- A is the total amount
- P is the principal amount (initial investment)
- r is the annual interest rate (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, substituting the given values:
- A = $20,000(1+0.052/365)^(365*6)
Calculating this equation will give you the total amount after 6 years of the investment.