Question

Brian deposited $9,411 into a savings account for which interest is compounded

weekly at a rate of 3.48%. How much interest will he earn after 7 years? Round
answer to the hundredths place. If answer does not have a hundredths place then
include zeros so it does. Do not include units in the answer. Be sure to attach your
work for credit.

Answer 1

We can use the formula for compound interest to calculate the amount of interest Brian will earn:

A = P (1 + r/n)^(nt)

where:

A = the total amount after 7 years

P = the principal amount ($9,411)

r = the annual interest rate (3.48%)

n = the number of times the interest is compounded per year (52 weeks in a year, so n = 52)

t = the number of years (7)

Plugging in the values, we get:

A = $9,411 (1 + 0.0348/52)^(52*7)

A = $9,411 (1.0006692302021135)^364

A = $12,471.36

To find the amount of interest earned, we can subtract the principal amount from the total amount:

Interest = $12,471.36 - $9,411 = $3,060.36

Therefore, Brian will earn $3,060.36 in interest after 7 years. Rounded to the nearest cent, this is $3,060.37.