SOLUTION: Your grandma deposits $1000 in a savings account for you that pays 4% interest compounded yearly. How much money will you have after 18 years?

Question 75359: Your grandma deposits $1000 in a savings account for you that pays 4% interest compounded yearly.
How much money will you have after 18 years?
Answer by scott8148(6628) (Show Source): You can put this solution on YOUR website!
After each compounding period (year) you will have 104% of what you started with (the original amount plus 4% interest). You can convert to a decimal (1.04) and multiply it 18 times . This number, multiplied by the original amount ($1000), will give you the amount after 18 years.

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