Answer:
Step-by-step explanation:
Initial amount deposited into the account is $18,000 This means that the principal is
P = 18000
It was compounded quarterly. This means that it was compounded 4 times in a year. So
n = 4
The rate at which the principal was compounded is 4%. So
r = 4/100 = 0.04
It was compounded for just 18 years. So
t = 18
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 18000(1+0.04/4)^4 × 18
A = 18000(1.01)^72 = $36847.79
