johns parents deposited $1000 into a savings account as a college fund when he was born. how much will john…

johns parents deposited $1000 into a savings account as a college fund when he was born. how much will john have in this account after 18 years at a yearly simple interest rate of 3.25%?

johns parents deposited $1000 into a savings account as a college fund when he was born. how much will john have in this account after 18 years at a yearly simple interest rate of 3.25%?

Answer

Explanation:

Step1: Calculate the simple interest

The formula for simple interest is (I = Prt), where (P=$1000) (principal amount), (r = 3.25%=0.0325) (annual interest rate), and (t = 18) (time in years). [I=1000\times0.0325\times18] [I = 1000\times0.585] [I=$585]

Step2: Calculate the total amount

The total amount (A) in the account is the sum of the principal (P) and the interest (I). [A=P + I] [A=1000+585]

Answer:

($1585)