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

Total = Principal * (1+ rate/n)^(years*n)
where n=52 (for weekly compounding).
Total = 10,250 * (1. 0.00173076923076923)^(364)
Total = 10,250 * 1.87658837838566
Total = 19,235.03

Answer 2

The value of the investment is $19229.39

Explanation:

Given : Maggs invests $10,250 at a rate of 9%, compounded weekly. The investment is after 7 years.

To find : The value of the investment ?

Solution :

Using compound interest formula,

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

Where A is the amount

P is the principle P=10,250

r is the rate r=9%=0.09

t is the time t= 7 years

Number of weeks in a year =52

n=52

Substitute the value,

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

`A=10250(1+(0.09)/(52))^(52* 7)`

`A=10250(1+0.001730)^(364)`

`A=10250(1.001730)^(364)`

`A=10250(1.876039)`

`A=19229.39`

Therefore, The value of the investment is $19229.39