Question

Mr. & Mrs. Vick deposited $3,500 into a simple interest college savings account earning 6.5% annually when their son was born. How much money will be in the savings account when their son is 18 years old?

Answer 1

$7595

Explanation:

Principal Amount =
`P` =
`\$3500` .

Simple Interest Rate =
`6.5\%` .

`Total\textrm{ }Amount=Principal+Interest=P+P* i* T`

Here
`T` is the Time period which is 18 years.

`\textrm{Total Amount = }\$3500+(\$3500)*(6.5* (1)/(100))* (18yr)=\$7595`

∴ Total Amount in the savings account when their son gets 18 years old =
`\$7595`