Suppose your parents deposited $1,500 in an account saying 3.5% interest compounded annually (once a year) when you were born. I have to find the account balance after 18 years , please help
To find the account balance after 18 years with an initial deposit of $1,500 and an annual interest rate of 3.5% compounded annually, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final account balance
P = the principal amount (initial deposit)
r = the annual interest rate (written as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case:
P = $1,500
r = 3.5% = 0.035 (expressed as a decimal because the formula requires it)
n = 1 (interest is compounded only once per year)
t = 18 years
Now substitute these values into the formula:
A = $1,500(1 + 0.035/1)^(1*18)
A = $1,500(1.035)^18
Calculating:
A ≈ $1,500 × 1.7012337
A ≈ $2,551.85
Therefore, the account balance after 18 years would be approximately $2,551.85.
To find the account balance after 18 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final account balance
P is the initial principal amount ($1,500)
r is the annual interest rate (3.5% or 0.035)
n is the number of times interest is compounded per year (once annually)
t is the number of years (18)
Substituting the given values into the formula, we have:
A = 1500(1 + 0.035/1)^(1*18)
Now we can calculate this expression to find the account balance after 18 years.
just use your formula:
1500(1+0.035)^18