Answer:
28,370.38
Step-by-step explanation:
If accumulated but not compounded
.06 * 20,000 = 1200 per year
1200 * 6 = 7200 total interest
7200 + 20,000 = 27,200
If compounded annually
20,000 * 1.06^6 = 20,000*1.4185 = 28,370.38
just an addtion to the reply above.
[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$20000\\ r=rate\to 6\%\to \frac{6}{100}\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &6 \end{cases} \\\\\\ A=20000\left(1+\frac{0.06}{1}\right)^{1\cdot 6}\implies A=20000(1.06)^6\implies A\approx 28370.38[/tex]
