Joan invests $20,000 in a government bond that pays 6% interest compounded annually.  To the nearest dollar, what is the value of the investment at the end of six years?

 

 

We can do this problem step-by-step.

 

 

We then round to the nearest whole dollar:  $28,370

 

Or we can use the compound interest formula: 

 

 rounded to the nearest whole dollar, $28,370