Answer: $21,218
Step-by-step explanation:
[tex]A = P\bigg(1 + \dfrac{r}{n}\bigg)^{nt}\\\\\circ \text{A is the Accrued Amount}\\\circ \text{P is the Principle (amount invested)}\\\circ \text{r is the interest rate (convert percent into a decimal)}\\\circ \text{n is the number of times per year that interest is earned}\circ \text{t is the time}\\\\\text{In the given problem:}\\A=unknown\\P=20,000\\r=3\%\ \rightarrow 0.03\\n = 1\\t = 2\\\\A = 20,000\bigg(1 + \dfrac{0.03}{1}\bigg)^{(1)(2)}\\\\A = 20,000(1+0.03)^2\\\\A = 20,000(1.03)^2[/tex]
[tex]A=20,000(1.0609)\\\\A=21,218[/tex]
