Question

Ben deosites 4580 in an account that earns 6% apr compounded weekly. What is the ending balance after 2 years

Answer 1

Given:

Principal value = 4580

Rate of interest = 6% apr compounded weekly

To find:

The total amount after 2 years.

Solution:

The formula for amount is

`A=P\left(1+(r)/(100n)\right)^(nt)`

Where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is number of years.

1 year = 52 week

n=52

Putting P=4580, r=6, n=52, t=2 in the above formula, we get

`A=4580\left(1+(6)/(100(52))\right)^(52* 2)`

`A=4580\left(1+(6)/(5200)\right)^(104)`

`A=4580\left(1+(3)/(2600)\right)^(104)`

`A=4580\left((2603)/(2600)\right)^(104)`

On further simplification, we get

`A=4580(1.1274188)`

`A=5163.5781`

`A\approx 5163.58`

Therefore, the ending balance after 2 years is 5163.58.