Final answer:
To calculate the future value of an investment with compound interest, we use a specific formula. The question did not provide the number of years the investment would be held, which is a necessary component to find the final amount.
Step-by-step explanation:
Calculating Future Value with Compound Interest
To calculate the future value of an investment with compound interest, we use the formula:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
In the question, you are asked to calculate how much money will be in the account after a certain number of years. The initial investment (P) is $1500, the annual interest rate (r) is 1.8%, and the interest is compounded monthly which means n is 12. However, the number of years (t) is not provided in the question. If we had that number, we could plug all values into the formula to calculate the future value of the investment.
For example, if the investment is for 5 years, the equation would be:
A = 1500(1 + 0.018/12)^(12*5)
Without the specific number of years, we cannot calculate the final amount.