On your second birthday, your parents deposited $500 into a savings account that earns 7% interest and compounds monthly. How much will be in the account when you are 18 years old

$1755 will be in the account when you are 18 years old.

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $500

r = 7% = 7/100 = 0.07

n = 12 because it was compounded 12 times in a year.

t = 18 years

Therefore,

A = 500(1 + 0.07/12)^12 × 18

A = 500(1 + 0.00583)^216

A = 500(1.00583)^216

A = $1755

f

step-by-step explanation:

f

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.