Question

If Julie invests $9,250 at a rate of 7%, compounded weekly, find the value of the investment after 5 years. $13,455.78

Answer 1

What is that $13,455.78? Something? I did this and got $13,122.76. Here's how I did it:
Use this formula

`A=P(1+ (r)/(n) ) ^((n)(t))` where A is the ending amount, P is the starting amount, n is the number of times it compounds a year, and t is the number of years. We have all we need to set it up:

`A=9,250(1+ (.07)/(52) ) ^((52)(5))`
First divide and add inside the parenthesis:

`A=9,250(1.001346) ^((52)(5))`
then multiply the exponents:

`A=9,250(1.001346) ^(260)`
raise the value inside the parenthesis to the power of 260:

`A=9,250(1.418676)`
and finally multiply to get A = $13,122.76