Question

When Priscilla was born her parents put $8000 into a college fund account that earns 9% simple interest. Find the total amount in the account after 18 years

Answer 1

P is the principal amount, $8000.00.

r is the interest rate, 9% per year, or in decimal form, 9/100=0.09.

t is the time involved, 18....year(s) time periods.

So, t is 18....year time periods.

To find the simple interest, we multiply 8000 × 0.09 × 18 to get that:

The interest is: $12960.00