Question

If Jeannie invests $7,250 at a rate of 12%, compounded weekly, find the value of the investment after 10 years. $24,037.59 $16,027.44 $22,517.40 $24,070.85

Answer 1

A(10)=$24037.59

Explanation:

A(t) = P(1+(r/n))^(n*t)

A(10) = 7250(1+(0.12/52))^(10*52)

A(10) = $24037.59

Answer 2

The answer is option A $24,037.59

Explanation:

P =
`7250`

r= 12% or
`0.12`

t = 10 years

n = 52 (There are 52 weeks in a year)

The formula to be used is :

`p(1+(r)/(n))^(nt)`

Now putting the values in the formula we get

`7250(1+(0.12)/(52))^(520)`

`7250(1.002307)^(520)`

=> $24028.96

This is closest to $24037.59, so the answer is option A $24,037.59