Question

Malik deposits $4200 in an account that pays 3. 1% interest compounded weekly. What will be the value of the account in 5 years? Round to the nearest cent

Answer 1

hmmm now this is assuming is 3.1% per year, with a compounding period per week, now there are 52 weeks in a year.

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$4200\\ r=rate\to 3.1\%\to (3.1)/(100)\dotfill &0.031\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{weekly, thus fifty two} \end{array}\dotfill &52\\ t=years\dotfill &5 \end{cases}`

`A=4200\left(1+(0.031)/(52)\right)^(52\cdot 5)\implies A=4200\left( (52031)/(52000) \right)^(260)\implies A\approx 52775.70`