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Alicia is investing in a savings account that pays 3.5% interest compounded weekly.

She invests $3,385 for 15 years.

How much interest has she earned after 15 years?

Round your answer to 2 decimal places!

User Yolanda
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1 Answer

5 votes

Answer:

Explanation:

We would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $3385

r = 3.5% = 3.5/100 = 0.035

A year has 52 weeks.

n = 52 because it was compounded 52 times in a year.

t = 15 years

Therefore,

A = 3385(1 + 0.035/52)^52 × 15

A = 3385(1 + 0.00067)^780

A = 3385(1.00067)^780

A = $5708.80

User Rohit Thomas
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