Answer:
Given:
Principal (P) = $20,000 , interest rate compounded annually (r) = 5.2% = [tex]\frac{5.2}{100} = 0.052[/tex] ; n = 1 , t = 3 years.
Using formula :
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
where
A is total return
P is the Principal ,
r is interest rate ,
n is the number of times interest is compounded per year
t is the time in year.
Substitute the given values we have;
[tex]A = 20,000(1+\frac{0.052}{1})^{1 \cdot 3}[/tex]
[tex]A = 20000(1.052)^{3}[/tex]
Simplify:
A = $23285.05216
Therefore, your total return is, $23285.05216
