Question

Dylan wants to invest $3500 for 5 years. The bank offers him 4%/a compounded weekly. Calculate the final amount of this investment. In TVM solver we are solving for? (Where do we put the blue dot?

Answer 1

the final amount value is $4,274.58

Explanation:

Given that

Present value = $3,500

Time period = 5 × 52 = 260

Rate of interest = 4% ÷ 52 = 0.0769%

We need to determine the final amount i.e. future value

So as we know that

Future value = Present value × (1 + rate of interest)^time period

= $3,500 × (1 + 0.0769%)^260

= $4,274.58

Hence, the final amount value is $4,274.58