Given:
Initial amount in the account = $1,000
Interest rate = 3.25%
Since the type of interest is simple, 3.25 % of 1000 will be added to that account every year with no increase in the incrementing amount
Amount increased in 18 years:
Amount increased every year = 3.25 * 1000 / 100 = $32.5
Amount increased in 18 years = amount gained in 1 year * 18
Amount increased in 18 years = 32.5 * 18 = $585
Total amount in John's bank account at the age of 18:
Initial amount + amount increased in 18 years
1000 + 585
$1,585
