Answer:
[tex]Amount = Principal +\frac{PrincipalX RateXTime}{100}[/tex]
Step-by-step explanation:
The formula that would be used to solve this problem is given below:
Amount = Principal + Simple Interest
[tex]Simple \: Interest =\frac{PrincipalX RateXTime}{100}[/tex]
Where:
Principal = this is the amount kept/invested in the bank.
Rate = This is the Percentage(as a fraction of 100) at which Interest will be paid
Time=The duration for which the money will be saved in years.
Therefore, from the given information:
Principal=$5000
Simple interest rate = 6%
Time = 18 years
[tex]Amount = Principal +\frac{PrincipalX RateXTime}{100}[/tex]
[tex]Amount = 5000 +\frac{5000X 6X18}{100}\\=5000+5400\\=\$10,400[/tex]
