Answer to Question #168980 in Financial Math for Alex

Question

Cameron invests $10,000 in an account that pays 5.3% per year. How much will he have if it is compounded weekly for 15 years?

Answer 1

A = total amount (to be calculated)

P = $10,000 (principal or amount of money deposited)

r = 5.3% per year (annual interest rate)

n = 52 (number of times compounded per year)

t = 15 (time in years)

 To find the amount we use the formula:

$A=P(1+{r\over n})^{n.t}$

After plugging the given information we have

$A= 10000(1+\dfrac{0.053}{52})^{52\times15}$

$A=10000(1+0.001019231)^{780}$

$A=10000(1.001019231)^{780}$

$A=22135.47$

So, after 15 years Cameron has $22135.47