Question

When Frederick was born, his grandparents gave hima a gift of $2000, which was invested at a simple interest rate of 5% per year. How much money will Frederick have when he can collect the monet at the age of 18? ( Assume no money is added to the account besides the interest.)

Answer 1

2000(1+.05*18)

Answer 2

(1 + (nr)/(100))(\$2000) = 3800