Suppose that $14,000 is deposited for eight years at 4% APR. Calculate the interest earned if interest is compounded weekly. Round your answer to the nearest cent.
Added by James M.
Step 1
To convert the annual interest rate to a weekly interest rate, divide the annual interest rate by the number of weeks in a year. There are 52 weeks in a year. Weekly interest rate = 4% / 52 = 0.04 / 52 = 0.0007692 Show more…
Show all steps
Your feedback will help us improve your experience
Derek Follett and 71 other Financial Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
If 12,000 is deposited in an account paying $8 \%$ interest per year, compounded continuously, how long will it take for the balance to reach $\$ 20,000 ?$
Functions and Change
Exponential Growth and Decay
Find the accumulated amount after 3 years if $4000 is invested at 8%/year compounded continuously. (Round your answer to the nearest cent.
Vikash R.
Suppose that $17,000 is deposited for eight years at 5% APR. Calculate the interest earned if interest is compounded weekly. Round your answer to the nearest cent.
Victor S.
Recommended Textbooks
Mathematics for Finance An Introduction to Financial Engineering
Universe: Solar System, Stars, and Galaxies
The Mathematics of Financial Derivatives: A Student Introduction
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD