Question

Jackson started a savings account using the bonus he received from work of $3,500. Theaccount is compounded weekly with an interest rate of 1.75% How much interest did theaccount earned in 18 years?O $1,295.65O $1,102.500 $4,795.65o $1,290

Answer 1

The amount compounded is given by the formula ;

`A=P\lbrack1+(r)/(100n)\rbrack^(nt)`

Here, P = $3500, r = 1.75%, n = 52 , t = 18 years.

`\begin{gathered} A=3500\lbrack1+(1.75)/(100*52)\rbrack^(52*18) \\ A=4795.65 \end{gathered}`

Therefore, the interest the account will earn is 4795.65-3500 = $1295.65, Option A