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Find the accumulated value of an investment of 20,000 for six years and an interest rate of 5

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Final answer:

To find the accumulated value of an investment of $20,000 with an interest rate of 5% for six years, you can use the formula for compound interest.

Step-by-step explanation:

To find the accumulated value of an investment with an interest rate of 5% for six years, you can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the accumulated value, P is the initial investment, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, P = $20,000, r = 5% or 0.05, n = 1 (annual compounding), and t = 6 years.

Plugging in the values into the formula: A = 20000(1 + 0.05/1)^(1*6) = 20000(1.05)^6 = $26,532.44. Therefore, the accumulated value of the investment would be approximately $26,532.44 after six years.

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