Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made deposits of $100,000 now and $25,000 every 6 months for two years. Determine the future worth after 2 years of the deposits for i=16% per year, compounded weekly.
The future worth after 2 years of the deposits for i=16% per year, compounded weekly is $ 250528
Explanation
The payment period is for 6 months.
The compounding period is weekly.
The effective interest rate per payment period is
i/6 months = $\left( \left( 1 + \frac{0.08}{26} \right)^{26} - 1 \right) \times 100$
i/6 months = 8.315%
