Question

find the amount of money in an account playing 4.75% interest compounded weekly (n=52) 5 years after $2000 is deposited

Answer 1

$2535.88

Explanation:

Using the compound interest formula Accrued Amount = P (1 + r/n)^(nt)

where Accrued amount is to be determined

P = principal; $2000

r = 4.75% = 0.0475

t = number of years = 5

n = number of times interest is compounded = 52

Therefore

Accrued amount = 2000 (1 + 0.0475/52)^(5x52)

= 2000 x (1.000913)^260

= 2000 x 1.2679

= $2535.88