The day you were born your parents invested $5,000 in CD account (Certificate of Deposit). The account pays 0.88% annual interest rate. How much money will be in your account by
your high school graduation (18 years)?

Plz help. I need an answer and explanation step by step plz

You will have $5,792 in your account by your high school graduation

Step-by-step explanation:

Simple Interest

Interest calculated on the original principal only of a loan or on the balance of an account.

Unlike compound interest where the interest earned in the compounding periods is added to the new principal, simple interest only considers the principal to calculate the interest.

The interest earned is calculated as follows:

I=P.r.t

Where:

I=Interest

P=initial principal balance

r=interest rate

t=time

The parents invested P = $5,000 in CD account that pays r=0.88% annual interest rate. The rate must be converted to decimal, thus r=0.88/100 =0.0088.

We are required to calculate the total money in the account after t=18 years.

First, we calculate the interest:

I = $5,000 * 0.0088 * 18

I = $792

Adding interest to the principal, we have the future balance in the account:

A = $5,000 + $792 = $5,792

You will have $5,792 in your account by your high school graduation

i need a picure

step-by-step explanation: