note: please make sure to properly format your answers. all dollar figures in the answers need to include…

note: please make sure to properly format your answers. all dollar figures in the answers need to include the dollar sign and any 1,000 should include the comma ($2,354.67). all percentage values in the answers need to include a percentage sign (%). for all specific rounding instructions, round your answers to two decimal places, show both decimal places (5.00). a couple is opening a savings account for a newborn baby. they start with $1,450 received in baby gifts. if no deposits or withdrawals are made, what is the balance of the account if it earns simple interest at 5% for 18 years?

note: please make sure to properly format your answers. all dollar figures in the answers need to include the dollar sign and any 1,000 should include the comma ($2,354.67). all percentage values in the answers need to include a percentage sign (%). for all specific rounding instructions, round your answers to two decimal places, show both decimal places (5.00). a couple is opening a savings account for a newborn baby. they start with $1,450 received in baby gifts. if no deposits or withdrawals are made, what is the balance of the account if it earns simple interest at 5% for 18 years?

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$1450$, $r = 0.05$ (since $5%=0.05$), and $t = 18$ years.

Step2: Calculate the interest

$I=Prt=1450\times0.05\times18$ $I = 1450\times0.9=$1305$

Step3: Calculate the account balance

The account balance $A$ is the sum of the principal $P$ and the interest $I$. So, $A=P + I$. $A=1450+1305=$2755.00$

Answer:

$2755.00$