Question

Jensen deposits $1,800 at 8.25% interest compounded weekly. What is her ending balance after six months

Answer 1

`\$1,875.74`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=0.5\ years\\ P=\$1,800\\ r=0.0825\\n=52`

substitute in the formula above
`A=\$1,800(1+(0.0825)/(52))^(52*0.5)=\$1,875.74`