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If you invest $10500.00 at an interest rate of 6.30% per annum, compounded weckly, what will the total value of your investment be after 7.75 years?

User Ratijas
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1 Answer

3 votes

Answer:

So, after 7.75 years, your investment will grow to a total value of $16,029.50.

Explanation:

To calculate the total value of your investment after 7.75 years, we can use the formula for compound interest:

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

Where:

A = the final amount

P = the principal amount (initial investment)

r = the annual interest rate (in decimal form)

n = the number of times interest is compounded per year

t = the number of years

In this case, the principal amount (P) is $10500.00, the annual interest rate (r) is 6.30% or 0.063 in decimal form, the interest is compounded weekly (n = 52), and the time (t) is 7.75 years.

Plugging in the values into the formula, we get:

A = 10500(1 + 0.063/52)^(52*7.75)

Calculating this equation, the total value of your investment after 7.75 years is $16,029.50 (rounded to the nearest cent).

User Dhruvisha
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