Answer:
$52,581
Step-by-step explanation:
To solve this problem, we can apply the formula for the compounded interest, which is:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the amount after time t
P is the principal
r is the rate of interest
n is the number of times the interest is compounded in a time t
t is the time
In this problem, we have:
P = $18,000 is the principal
t = 18 y is the time (18 years)
r = 0.06 is the rate of interest (6%)
n = 4, since the interest is compounded quarterly
Therefore, we find
[tex]A=(18000)(1+\frac{0.06}{4})^{4\cdot 18}=\$52581[/tex]
