Question

Finance suppose that when your friend was born, your friend ‘s parents deposited $2000 in an account paying 4.5% interest compounded monthly. What will the account balance be after 18 years?

Answer 1

Use the compounding interest formula here:
$a = 2000(1 + \frac{0.045}{12} )^{(12)(18)} \\ a = 4489.01$

There will be about 4,489 dollars on the account after 18 years.