Kelly's parents plan to put money into an account and leave it there for 16 years before she goes to college. If they put $1000 into an account that earns 3.75% interest how much will be in Kelly's account when it is time for her to go to college?

In 16 years if her parents put in $1,000 and accrues 3.75% interest annually; in 16 years she will have $1,600 in the account.

To find this we need to multiply the amount deposited originally, by the annual percentage, by the amount of years in total.

We'll change the percentage into a decimal by moving the decimal two places to the right; which will change it to 0.0375.

Our equation will look like this:

1,000 x 0.0375 x 16

1,000 x 0.0375 = 37.50

37.50 x 16 = 600.

So, in 16 years at 3.75%, she will earn $600 in interest.

We'll add the interested of $600 to the original deposited amount of $1,000.

$1,000 + $600 = $1,600.