Question

Stephen deposited $1800 into a savings account for which interest is compounded weekly at a rate of 3.2%. How much interest will he earn after 10 years?
A. $58.51

B. $678.59

C. $2478.59

D. $7679.48

Answer 1

Hi there
First find the future value using the compound interest formula
The formula is
A=p (1+r/k)^kn
A future value?
P present value 1800
R interest rate 0.032
K compounded weekly 52
N time 10 years
A=1,800×(1+0.032÷52)^(52×10)
A=2,478.59

Now find the interest earned
I=A-p
A future value 2478.59
P present value 1800
So
I=2,478.59−1,800
I=678.59

It's b

Good luck!