Question 5 (10 points)
How much interest does a investment earn at over 18 years?

Let’s break this down in a fun way! If you invest $10,000 at a juicy interest rate of 5.6% for 18 years, you’re looking at some serious growth! Using the formula for compound interest, you can see how your money can flourish over time. In this case, you’d actually earn about $10,800 after 18 years, which doesn’t even factor in the full power of compounding if we do it annually!

Now, onto that final total. After 18 years, you’d be sitting on a sweet $20,800! Just imagine what you could do with that extra cash. It’s essential to see how small investments can turn into significant gains over time in the world of finance. Keep planting those money seeds and watch them grow!