Question

Suppose you are planning to deposit $3,000 in a bank account. You'd like your deposit to grow to $6,000 in 2 years. If interest in the account compounds weekly, what annual interest rate do you need?

Answer 1

The annual interest rate do you need is 34.77%

Step-by-step explanation:

for: A is the future value

P is the present value

r is the rate of interest

n is the time period.

Then, the annual interest can be found by:

A = P(1 + r/52)^(52*n)

6000 = 3000*(1 + r/52)^(52*2)

(6000/3000)^(1/104) = (1 + r/52)

(1 + r/52) = 1.006687136

r = (1.006687136 - 1)*52

= 34.77%

Therefore, The annual interest rate do you need is 34.77%