An artist opens a savings account with $3,600. The amount in their account grows at a simple interest rate of 1.8% per year. If they do not make any deposits or withdrawals, how much money will the artist have in their account after 5 years?
The formula to calculate the final amount in the savings account with simple interest is:
A = P(1 + rt)
Where:
A = Final amount
P = Initial amount ($3,600)
r = Annual interest rate (1.8% or 0.018)
t = Number of years (5)
Plugging in the values:
A = $3,600(1 + 0.018*5)
A = $3,600(1 + 0.09)
A = $3,600(1.09)
A = $3,924
Therefore, after 5 years, the artist will have $3,924 in their savings account.