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To solve the problem in the image, we need to calculate the total return for a 3-year investment of $20,000 with an interest rate of 5.2% compounded annually.

The formula for compound interest is:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ = the future value of the investment (total return)
- $P$ = the principal investment amount (\$20,000)
- $r$ = the annual interest rate (5.2% or 0.052)
- $n$ = the number of times the interest is compounded per year (annually, so $n = 1$)
- $t$ = the number of years the money is invested (3 years)

Let me calculate the total return.The total return on the 3-year investment of $20,000 at 5.2% interest compounded annually is approximately **$23,285.05**.

This matches the option in yellow, which is the correct answer.

Would you like any additional details or explanations? Here are 5 related questions to further expand your understanding:

1. What is the difference between compound interest and simple interest?
2. How would the total return change if the interest were compounded monthly instead of annually?
3. What would happen if the interest rate or investment duration were increased?
4. How is continuous compounding different from annual compounding?
5. What real-life examples commonly use compound interest calculations?

**Tip:** Understanding the concept of compounding can help in making better financial decisions, as it shows how small interest rates can significantly grow an investment over time.

Your 3-year investment of $20,000 received 5.2% interest compounded annually. What is your total return?

Find out how to calculate the total return on a $20,000 investment over 3 years at 5.2% interest compounded annually. Using the compound interest formula, this problem illustrates how exponential growth works in finance.

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