351,118 views
33 votes
33 votes
$15,000 is deposited into an account that pays 6.25% annual interest, compounded weekly. Find the balance after 7 years.

User Mehrdad Hedayati
by
2.4k points

1 Answer

12 votes
12 votes

Answer: (if A=P(1+rt) is your formula)

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6.25%/100 = 0.0625 per year.

Solving our equation:

A = 15000(1 + (0.0625 × 7)) = 21562.5

A = $21,562.50

The total amount accrued, principal plus interest, from simple interest on a principal of $15,000.00 at a rate of 6.25% per year for 7 years is $21,562.50.

User Graham Conzett
by
2.6k points