Question

Leo deposited $7,770.11 in an account that earned 2.5% interest compounded weekly for 13

years. After 13 years, how much had Leo earned in interest?

Answer 1

The amount which Leo earned weekly is $10747.616

Explanation:

Given as :

Principal deposited in account = $7,770.11

The compounded weekly rate of interest = 2.5%

The time period of loan = 13 years

Let the amount Leo earned = A

From compounded method

Amount = Principal ×
`(1 + (Rate)/(52* 100))^(52* Time)`

Or, Amount = $7,770.11 ×
`(1 + (2.5)/(52* 100))^(52* 13)`

Or, Amount = $7,770.11 ×
`( 1.000480)^(676)`

Or, Amount = $7,770.11 × 1.3832

∴ Amount = $10747.616

Hence The amount which Leo earned weekly is $10747.616 Answer