Final answer:
To calculate the amount of money you would have on your 18th birthday, you need to use the formula for compound interest. Plugging in the given values, you would have approximately $36,145.98 on your 18th birthday.
Step-by-step explanation:
To calculate the amount of money you would have on your 18th birthday, you need to use the formula for compound interest. The formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (the initial deposit), r is the annual interest rate (in decimal form), n is the number of times the interest is compounded per year, and t is the number of years. In this case, the principal is $1,000, the annual interest rate is 5% (or 0.05), the number of times compounded per year is 1, and the number of years is 18. Plugging these values into the formula, we get: A = 1000(1 + 0.05/1)^(1*18) = $36,145.98. So, you would have approximately $36,145.98 on your 18th birthday.