To calculate the interest earned by a $10,000 investment at 6% over 18 years, we can use the simple interest formula:
I = P * r * t
where:
I = interest earned
P = principal (initial investment)
r = interest rate per year (as a decimal)
t = time period in years
Plugging in the given values, we get:
I = 10,000 * 0.06 * 18 = $10,800
Therefore, the interest earned is $10,800 over the 18-year period.
To calculate the balance in the account after 18 years, we can simply add the interest earned to the initial investment:
Balance = 10,000 + 10,800 = $20,800
Therefore, the balance in the account after 18 years is $20,800.