An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be wor

Question

3 years ago

6

An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be wor

th in 30 years? An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 years?
Round your answer to the nearest dollar. Do not include the dollar sign in your answer.

Mathematics

1 answer:

ozzi · Answer 1 · 2022-01-09T19:04:07+03:00

Answer:

$3644675.9

Step-by-step explanation:

The initial investment is $100000. The interest rate is 12%.

We are asked to determine the final amount the investment will become after 30 years if the interest is compounded weekly.

The weekly interest rate is $\frac{12}{52} = 0.231$ %.

Assuming 1 year equivalent to 52 weeks.

Hence, using the formula of compound interest the final sum will be

$100000(1 + \frac{0.231}{100} )^{(30 \times 52)}$

= $3644675.9 (Approximate)