Question

Maggs invests $10,250 at a rate of 9%, compounded weekly. To the nearest whole dollar, find the value of the investment after 7 years.

Answer 1

Number of weeks in a year: 52
Weeks in 7 years: 52 x 7 = 364

Final amount = Initial amount x (1 + interest)^(time period)

Final amount = 10,250 x (1.09)³⁶⁴
Final amount = $4.3 x 10¹⁷

Answer 2

In a year: 52 weeks.
In 7 years: 52 * 7 = 364 weeks.
10,250 * ( 1 + 0.09/52 )^364 =
= 10,250 * ( 1 + 0.00173 )^364 =
= 10,250 * 1.00173^364 =
= 10,250 * 1.876 =
= $19,229.65 ≈ $19,230