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Vadim26 [7]
3 years ago
8

5.

Mathematics
1 answer:
Bogdan [553]3 years ago
3 0

<u>Answer:</u>

The present value of 10,000 if  interest is paid at a rate of 6.2% compounded  weekly for 8 years is 6097.56

<u>Explanation:</u>

We know that compound interest is given by  

A=P\left(1+\frac{r}{n}\right)^{n t}

Where ,  

Where A = final amount (which is given to be = 10000)

       P = Principal amount (which is the present amount which we have to find)

r  = interest rate = 6.2 = 0.062

n = no. of times interest applied per time period = it is given that the interest is applied weekly, so in one year there are 52 weeks so n = 52

t = time period = 8 years

Substituting the given values, we get

10000=\mathrm{P}\left(1+\frac{6.2}{52}\right)^{52\times 8}

P = 6097.5

We get, P = 6097.56 which is the present value of a sum of money

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