Answer:
He will have $6,765.228 in his savings account
Explanation:
<em>Step 1: Determine the number of weeks in a year</em>
1 year=52 weeks
5 years=52×5=260 weeks
<em>Step 2: Determine total earnings in 5 years</em>
Total earnings=earnings per 2 weeks×total number of weeks/2
where;
Total earnings=unknown
earnings every 2 weeks=$50
total number of weeks=260
replacing;
Total earnings=50×260/2=$6,500
<em>Step 3: Determine total earnings in 5 years when compounded with interest</em>
Using the formula;
A=P(1+r/n)^nt
where;
A=Final amount
P=initial amount
r=annual interest rate
n=number of times the rate is compounded annually
t=number of years
In our case;
A=unknown
P=$6,500
r=0.8%=0.8/100=0.008
n=52/2=26
t=5 years
replacing;
A=6,500(1+0.008/26)^(26×5)
A=6,500(1+0.000308)^130
A=6,765.228
He will have $6,765.228 in his savings account
