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.
P = Po + Po*r*t
P = 8000 + 8000*0.09*18. Solve for P.
n(t)=n0Xe^rt
n(18)=8000Xe^0.09X18
n(18)=$40,425
To find the total amount in the account after 18 years, we can use the formula for simple interest:
A = P(1 + rt)
Where:
A = Total amount
P = Principal amount (initial deposit)
r = Interest rate (as a decimal)
t = Time (in years)
In this case:
P = $8,000
r = 9% = 0.09
t = 18 years
Plugging in the values, we can calculate the total amount:
A = $8,000(1 + 0.09 * 18)
= $8,000(1 + 1.62)
= $8,000(2.62)
= $20,960
Therefore, the total amount in the account after 18 years is $20,960.
To find the total amount in the account after 18 years, we need to calculate the future value of the initial investment plus the interest earned over those 18 years.
First, let's calculate the interest for each year. The formula for simple interest is:
Interest = Principal * Rate * Time
In this case, the principal (initial investment) is $8,000, the rate is 9% (or 0.09 as a decimal), and the time is 18 years.
Interest = $8,000 * 0.09 * 18 = $12,960
Next, we add the interest to the initial investment to find the total amount in the account:
Total amount = Initial investment + Interest = $8,000 + $12,960 = $20,960
Therefore, the total amount in the account after 18 years is $20,960.