Question

If Julie invests $9,250 at a rate of 7%, compounded weekly, find the value of the investment after 5 years.

Answer 1

Answer:

Option D is correct.

Step-by-step explanation

Principal =  $9250

rate of interest = 7%  or 0.07

time = 5 years or 260 weeks

      [ Since there are 52 weeks in a year . for 5 years it will be 5x52=260 weeks]

Applying the formula  

Amount after t years =       $P(1+\frac{r}{n} )^{nt}$

                                         where P = principal

                                                     r = rate % in decimals

                                                    n= number of times in a year

                                                     t = times ( in years)

                          plugging the values  in the formula

              Amount =  $9250(1+\frac{0.07}{52} )^{(52X(5)}$

                             =  $9250(1+0.001346 )^{(260)}$

                              = $9250(1.001346 )^{(260)}$

                               = 9250(1.418733588)

                                =$13123.29