An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 yea

Question

An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 years? An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 years?

Round your answer to the nearest dollar. Do not include the dollar sign in your answer.

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Adeline 2 weeks 2021-09-09T13:51:25+00:00 1 Answer 0

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    2021-09-09T13:52:46+00:00

    Answer:

    $3644675.9

    Step-by-step explanation:

    The initial investment is $100000. The interest rate is 12%.  

    We are asked to determine the final amount the investment will become after 30 years if the interest is compounded weekly.

    The weekly interest rate is \frac{12}{52} = 0.231%.

    Assuming 1 year equivalent to 52 weeks.

    Hence, using the formula of compound interest the final sum will be  

    100000(1 + \frac{0.231}{100} )^{(30 \times 52)}

    = $3644675.9 (Approximate)

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