17.7k views
2 votes
You deposit $3500 into an account with an APR of 2.3% for 10 years. How much money would you have if the account is compounded weekly?

User Pockata
by
8.6k points

1 Answer

5 votes

The total amount would be 4393.639.

The compound interest would be 893.639

Compound interest is calculated when earnings are made on the interest.

That is the interest is reinvested and at the end the principal amount and compound interest together is received.

The formula for the total amount in compound interest is:-

Total amount= Principal amount * (1+r)^t

when the 3500 is substituted for principal amount, 2.3% is substituted for r , and 10 is substituted for t, you get the answer.

User Dmytro Sokolyuk
by
8.8k points