When Melissa was born, her parents put $8,000 into a college fund account that earned 9% simple interest. Find the total amount in the account after 18 years.
See previous post.
6,200
Mr Pham's retirement account has 410 000 dollars. Let's put to a situation that he's not withdrawing from his account for several years, and this earns an annual interest of 3.85%.Let's find out how much will he earn: => 3.85% = 3.85% / 100% = .0385 => 410 000 * 0.0385 = 15 785 dollars.Mr, Pham will earn around 15 785 dollars in every year for 2 years he will earn times 2 of this amount that will be added to his retirement amount. => 15 785 dollars * 2 = 31570 dollars for 2 years and so on.
To find the total amount in the account after 18 years, we need to calculate the interest earned and add it to the initial amount.
First, we calculate the interest earned each year. Since it is simple interest, we can use the formula:
Interest earned = Principal (initial amount) * Interest rate
In this case, the principal (initial amount) is $8,000 and the interest rate is 9% (or 0.09 as a decimal).
Interest earned per year = $8,000 * 0.09 = $720
Next, we calculate the total interest earned over 18 years by multiplying the interest earned per year by the number of years:
Total interest earned = Interest earned per year * Number of years
Total interest earned = $720 * 18 = $12,960
Finally, we add the initial amount and the total interest earned to get the total amount in the account after 18 years:
Total amount = Initial amount + Total interest earned
Total amount = $8,000 + $12,960 = $20,960
Therefore, the total amount in the account after 18 years is $20,960.