You invest 500 in an account that has an annual interest rate of 8%, compounded weekly for 12 years. What is the equivalent interest rate and how many times will the money be compounded? How much will you have?

Solution

Solution

Amount : 1304.89

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.08}{52})^{52 \cdot 12}

500 (1 + \frac{0.08}{52})^{52 \cdot 12} = 1304.88526 \dots

Round to the nearest hundredth:

1304.89

Amount : 1304.89

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