Final answer:
To calculate the amount you will have in the account after 25 years, use the formula for compound interest. The total amount will be approximately $18977.24. The total money put into the account will be $3000 and the total interest earned will be $15977.24.
Step-by-step explanation:
To calculate the amount you will have in the account after 25 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the total amount after time t
- P is the principal (initial deposit)
- r is the annual interest rate as a decimal
- n is the number of times the interest is compounded per year
- t is the number of years
In this case, P = $120, r = 0.02 (2% as a decimal), n = 52 (weekly compounding), and t = 25. Plugging in these values, we get:
A = $120(1 + 0.02/52)^(52 × 25)
Calculating this expression gives us a total amount of approximately $18977.24.
To find the total money you will put into the account, we can multiply the deposit amount by the number of weeks: $120 × 25 = $3000.
To find the total interest earned, we can subtract the total money deposited from the total amount in the account: $18977.24 - $3000 = $15977.24.