Question

Maggs invests $10,250 at a rate of 9%, compounded weekly. To the nearest whole dollar, find the value of the investment after 7 years.

Answer 1

Answer:

The value of the investment is $19229.39

Step-by-step explanation:

Given : Maggs invests $10,250 at a rate of 9%, compounded weekly. The investment is after 7 years.

To find : The value of the investment ?  

Solution :

Using compound interest formula,

$A=P(1+\frac{r}{n})^{nt}$

Where A is the amount  

P is the principle P=10,250    

r is the rate r=9%=0.09

t is the time t= 7 years  

Number of weeks in a year =52

n=52

Substitute the value,

$A=P(1+\frac{r}{n})^{nt}$

$A=10250(1+\frac{0.09}{52})^{52\times 7}$

$A=10250(1+0.001730)^{364}$

$A=10250(1.001730)^{364}$

$A=10250(1.876039)$

$A=19229.39$

Therefore, The value of the investment is $19229.39

Answer 2

Total = Principal * (1+ rate/n)^(years*n)
where n=52 (for weekly compounding).
Total = 10,250 * (1. 0.00173076923076923)^(364)
Total = 10,250 * 1.87658837838566
Total = 19,235.03