When Melissa was born, her parents put $8,000 into a college fund account that earned 9% simple interest. Find the total amount in the account after 18 years.
Melissa's parent saved 8 000 dollars in the bank for her college fund account. It earns 9% annual interest. After 18 years, how much interest will it accumulate and how much is the total amount that Melissa will have fore her college fund.=> 9% = 9% / 100% = 0.09Let's find the annuak interest first => 8 000 dollars * .09 = 720 dollars The, let's find the after 18 years interest=> 720 dollars * 18 = 12 960 dollarsTotal of the amount: => 8 000 + 12 960 = 20 960 dollars
