Answered

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If you deposit $200 into an account that pays 9% annual interest compounded weekly, how much money willyou have after 8 years?

Sagot :

To calculate the compound interest is;

[tex]A=P\lbrack1+\frac{r}{n}\rbrack^{nt}[/tex]

A is the ending amount

P is the principal

r is the interest rate

n is the number of compoundings a year

T is the time frame

From the question;

P= $200

R=9

Since it is compounded weekly, then n is 52

T=8

substituting into the formula;

[tex]A=200\lbrack1+\frac{9}{52}\rbrack^{52\times8}[/tex]

Evaluating;

[tex]A=200\lbrack\frac{52+9}{52}\rbrack^{416}[/tex]

[tex]A=200\lbrack\frac{61}{52}\rbrack^{416}[/tex][tex]A=200(1.17)^{416}[/tex]

A=

[tex]A=2.3\times10^{29}[/tex]

T= P+A

[tex]T=200\text{ +( 2.3}\times10^{29)}[/tex][tex]T=2.3\times10^{27}[/tex]

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