in an account that has 500 dollars and has an interest rate of 7.5% annually after 18 years would be what
$1175
amount = 500(1.075)^18 = $1837.90
To calculate the final amount in the account after 18 years, we need to apply the interest rate (7.5%) to the initial amount ($500) over the given time period (18 years).
The formula to calculate compound interest is:
A = P * (1 + r/n)^(nt)
Where:
A = the final amount (including interest)
P = the initial amount (principal)
r = the interest rate (expressed as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, the interest rate is 7.5% annually, so r = 0.075 (7.5% expressed as a decimal). Since the question doesn't mention how frequently the interest is compounded, we will assume it's compounded once per year (n = 1).
Plugging in the values into the formula:
A = $500 * (1 + 0.075/1)^(1*18)
A = $500 * (1.075)^18
A = $500 * 2.49392
Using a calculator, we find that A ≈ $1246.96
Therefore, after 18 years, the account would have approximately $1246.96.