SOLUTION: Determine the interest earned of a 12-year investment with an interest rate of 5.3 %/a compounded weekly, if future value is $41800. A) $ 17 630.77 B) $ 356.07 C) $ 14404.36 D)

Question 1102512: Determine the interest earned of a 12-year investment with an interest rate of 5.3 %/a compounded weekly, if future value is $41800.
A) $ 17 630.77 B) $ 356.07 C) $ 14404.36 D) $19 663.67
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

If the initial amount is A, then the amount after 12 years, compounded weekly (52 times a year), with an annual interest rate of 5.3%, is

Given that the future value is $41800, the original amount is

The original amount is $22136.33; the future value is $41800; the interest is

Answer D.

Note there is a faster way to get to the interest amount, after we find that

In that equation, A*1 is the original amount; A*0.8883 is the interest. So the fraction of the total future value of $41800 that is interest is 0.8883/1.8883. So the amount of interest is

RELATED QUESTIONS
Determine the interest earned of a 12-year investment with an interest rate of 5.3%... (answered by Boreal)

Susan invests R45 000 at a simple interest rate of 6% per year. Two years later, she adds (answered by )

Compute the amount of compound interest earned in 1 year for an investment of $1,000,000... (answered by rfer)

Determine the present value of a 20-year GIC with an interest rate of 7.9% a compounded... (answered by Theo)

Find the future value of an annuity with weekly deposits of $12.00, made over a period of (answered by rfer)

1) Find the future value of a simple interest loan of $4,000 at 5.5% interest for 7... (answered by Theo,MathTherapy)

A local university is planning to invest $500,000 every 3 months in an investment which... (answered by Theo)

a local university is planning to invest $ 500,000 every 3 months in an investment which... (answered by ikleyn)