Question

Find the compound interest and future value. Round your answers

to the nearest cent. Principal $118,000 Rate 4.29% Compounded
weekly Time 35 years

Answer 1

The compound interest is approximately $454,030.16 and the future value is approximately $572,030.16.

Step-by-step explanation:

To find the compound interest and future value, we can use the formula:

Future Value = Principal × (1 + interest rate)time

First, we will calculate the future value:

1. Principal = $118,000
2. Interest rate = 4.29% = 0.0429
3. Time = 35 years
4. Future Value = $118,000 × (1 + 0.0429)35 ≈ $572,030.16

Next, we can find the compound interest by subtracting the principal from the future value:

Compound Interest = Future Value - Principal ≈ $572,030.16 - $118,000 ≈ $454,030.16