This is calculated using the formula of: A = Pe(rt), where A is the total amount, P is the principal amount, e is mathematical constant approximately equal to 2.71828, r is the rate of interest, then t is the time in years.
Given we have the P as $12,000, r is 0.064 and t is 12, we expressed these values to the formula as;
A = Pe(rt)
A = 12,000.e(0.064 x 12)
A = 12,000 x 2.71828e
A = 12,000 x 2.155
A = $25,860
Therefore the money that Ann will have in 12 years is $25,860.
