Question

Suppose your parents deposited $1,500 in an account paying 3.5% interest compounded annually (once a year) when you were born. Find the account balance after 18 years. (round to the nearest cent).

Answer 1

A=p (1+r)^t
A future value
P present value 1500
R interest rate 0.035
T time 18

A=1,500×(1+0.035)^(18)
A=2,786.23