Brent invested $5607 in an account at 2% compounded weekly. Calculate the total investment after 7 years.
Please show me the steps.
I tried using this formula but it did not work. A=P(1+r/n)^6x1
I don't know sorry 😔
Okay let's look at our variables first:
P = $5607
R= 2% = 0.02
T= 7 years
n= 52 (it is compounded weekly)
Now we just plug it into the formula:
A=P(1+r/n)^nt
A=5607*[1+(.02/52)]^(52*7)
Plug it into calculator, you get:
A= $6449.41
Hope that helps.
How long would it take an investment of $6000 to amount to $9000 if interest is earned at 7% compounded continuously ?
Just checking something
To solve this problem, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the total investment after time t
P is the principal amount (initial investment)
r is the annual interest rate in decimal form
n is the number of times interest is compounded per year
t is the number of years
Let's break down the given information and substitute it into the formula:
Principal amount (P) = $5607
Annual interest rate (r) = 2% or 0.02 (in decimal form)
Number of times interest is compounded per year (n) = weekly, so it compounds 52 times per year
Time (t) = 7 years
Now we can calculate the total investment (A) using the formula:
A = 5607(1 + 0.02/52)^(52*7)
A = 5607(1 + 0.0003846)^(364)
To simplify the calculation, we can round the decimal within the parentheses to four decimal places:
A = 5607(1.0004)^364
A = 5607(1.191142568)
Multiplying the value inside the parentheses by the principal amount:
A ≈ 6676.24
Therefore, the total investment after 7 years would be approximately $6676.24.