Question

Jo deposited $1000 in a college fund. How much will he have altogether after 18 yrs at 3.25% ( What do they mean by "at 3.25%", do you multiply 3.25% by 18 and add or just how much 3.25% is? )

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\A=P(1+rt)\qquad\begin{cases}A=\textit{accumulated amount}\\P=\textit{original amount deposited}\dotfill & \ 1000\\r=rate\to 3.25\%\to \frac{3.25}{100}\dotfill &0.0325\\t=years\dotfill &18\end{cases}\\\\\\A=1000[1+(0.0325)(18)]\implies A=1000(1.585)\implies A=1585$