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Natali [406]
3 years ago
8

How much will you spend on an investment if you want to receive $7,000 at an annual rate of 6% compounded weekly in 4 years?

Mathematics
1 answer:
s344n2d4d5 [400]3 years ago
3 0

Answer:

The investment required is: $5687

Step-by-step explanation:

Future Amount A= $7000

Rate r = 6% =0.06

Time t = 4

Compounded Weekly = n= 52

We need to find Principal Amount P

The formula used is: A=P(1+\frac{r}{n})^{n*t}

Putting values and finding P

A=P(1+\frac{r}{n})^{n*t}\\7000=P(1+\frac{0.06}{52})^{4*52}\\7000=P(1.001)^{208}\\7000=P(1.231)\\P=\frac{7000}{1.231}  \\P=5687

So, The investment required is: $5687

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