Question

If Jeannie invests $7,250 at a rate of 12%, compounded weekly, find the value of the investment after 10 years.

Answer 1

A=P(1+r/n)^nt......... required formula.

A=Amount after investment

P=starting amount

r=rate of interest (in %)

n=no. of times interest is compounded per year

t=Time

A=?

P=$7250

r=12/100=0.12

n=compounded weekly=365days/4weeks per month=91

t=10yrs

Therefore, A=$24051.8

Answer 2

Given :

• If Jeannie invests $7,250 at a rate of 12%, compounded weekly.

To find :

• What is the value of the investment after 10 years.

Concept :

• To solve this question, we can use the "Compounded interest formula".

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Using formula :

★ A = P (1 + R/n)^n × T.

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★ Amount = Principal (1 + Rate/Interest time)^Interest time × Overall time period.

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Remember :

• Here, as per the question its compounded weekly that we have to take calculations for weekly (Weeks = 52).

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• 12℅ = 0.12.

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Calculations :

→ Amount = 7250 (1 + 0.12/52)^52 × 10

→ Amount = 7250 (1.12/52)^52 × 10

→ Amount = $24028.96

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Therefore, $24028.96 is the value of amount investment after 10 years.