Suppose that 17,000 is deposited for eight years at 5% APR. Calculate the interest earned if interest is compounded weekly. Round your answer to the nearest cent.

Solution

Suppose that 17, 000 is deposited for eight years at 5% APR. Calculate the interest earned if interest is compounded weekly. Round your answer to the nearest cent.

Solution

Interest : 8356.15

Solution steps

Translate the problem into an equation:

25356.14633 \dots = 17000 + I

Solve for

I, 25356.14633 \dots = 17000 + I : I = 8356.15

Interest : 8356.15

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