Question

$200 are deposited into an account with a 6% interest rate, compounded weekly. Find the accumulated amount after 9 years.

Hint: A = P (1 + r/k)^kt

Round your answer to the nearest cent (hundredth)

Answer 1

The accumulated amount is approximately $342.85.

Step-by-step explanation:

To find the accumulated amount after 9 years with a 6% interest rate compounded weekly, we can use the formula:

A = P(1 + r/k)^(kt)

Where:

• A is the accumulated amount
• P is the principal amount, which is $200
• r is the interest rate, which is 6%
• k is the number of times the interest is compounded per year, which is 52 (weekly compounded)
• t is the number of years

Plugging in the values, we have:

A = 200(1 + 0.06/52)^(52 * 9)

A = 200(1.001153)^(468)

Solving this using a calculator, the accumulated amount is approximately $342.85.