Jay places $3200 in an investment account earning 4.1% interest compounded weekly. How much money would he have in the account after 5 years

Question

Jay places $3200 in an investment account earning 4.1% interest compounded weekly. How much money would he have in the account after 5 years, if he made no deposits or withdrawals during that time?

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Orla Orla 4 years 2021-08-13T03:29:26+00:00 1 Answers 5 views 0

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    2021-08-13T03:31:03+00:00

    Answer:

    A = $3,926.71

    Step-by-step explanation:

    Given: Principal (P) = $3200, Annual Rate (R) = 4.1%, Time = 5 years

    To find: How much money would he have in the account after 5 years, if he made no deposits or withdrawals during that time?

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

    Solution: Compound interest is one of the most important concepts to understand when managing your finances. It can help you earn a higher return on your savings and investments, but it can also work against you when you’re paying interest on a loan

    First, convert R as a percent to r as a decimal

    r = R/100

    r = 4.1/100

    r = 0.041 rate per year,

    Then solve the equation for A

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

    A = 3,200.00(1 + 0.041/12)^{(12)(5)}

    A = 3,200.00(1 + 0.003416667)^{(60)}

    A = $3,926.71

    Hence, Jay would have $3,926.71 after 5 years is if he made no deposits or withdrawals during that time.

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