Answer:
$20,960
Explanation:
Use the formula for amount after simple interest A = P(1 + rt)
"A" is the final amount
"P" is principal, or starting amount
"r" is the interest rate as a decimal
"t" is the time in years
We finding "A".
P = 8000
r = 9%/100 = 0.09
t = 18
Substitute the values into the formula, then solve to get the final answer.
A = P(1 + rt)
A = 8,000(1 + (0.09)(18))
Remember to follow BEDMAS order when solving. Solve brackets first.
A = 8,000(1 + (0.09)(18)) Multiply in brackets.
A = 8,000(1 + 1.62) Add in brackets.
A = 8,000(2.62) Multiply
A = 20,960 Answer
Therefore Melissa's college fund account will have a total amount of $20,960.