Question

John's parents deposited $1000 into a savings account as a college fund when he was born. How much will John have in this account afer 18 years at a yearly simple inerest rate of 3.25%?​

Answer 1

1585, the interest per year is 32.50 you multiply that by 18 and add it to the 1000

Answer 2

$1,585

Explanation:

Simple interest formula:

A = P(1 + rt)

where:

• A = final amount
• P = principal
• r = annual interest rate (in decimal form)
• t = time (in years)

Given:

• P = $1000
• r = 3.25% = 0.0325
• t = 18 years

Substituting given values into the formula:

⇒ A = 1000(1 + 0.0325 · 18)

= 1585