document.write( "Question 1123270: Josh invests $50 weekly for 6 years in his savings account that has a 2.8% interest rate, compounded weekly. How much money will he have after 6 years \n" ); document.write( "

Algebra.Com's Answer #739578 by ikleyn(52787) $\"\"$ $\"About$

You can put this solution on YOUR website!
.
\n" ); document.write( "Josh invests $50 weekly for 6 years in his savings account that has a 2.8% interest rate, compounded weekly.
\n" ); document.write( "How much money will he have after 6 years ?
\n" ); document.write( "~~~~~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "This problem is about a future value for Ordinary Annuity saving plan.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Tutor @Theo misread the condition and mistakenly used another formula, which is not relevant to given condition, \r\n" );
document.write( "therefore, he obtained incorrect answer. \r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "The correct formula for the Ordinary Annuity saving plan is\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "f = ,\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "f is the future value\r\n" );
document.write( "p is the weekly payment\r\n" );
document.write( "r is the interest rate per time period\r\n" );
document.write( "n is the number of time periods.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "In your problem:\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "time periods are weeks.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "p = 50 dollars  \r\n" );
document.write( "r = 0.028/52   per week\r\n" );
document.write( "n = 6 * 52 = 312 weeks   (counting 52 weeks in the year)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "formula becomes f =  = 16982.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Josh will have $16982 in his saving account in 6 years.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Interesting, that his total direct investment will be only  $50*52*6 = $15600.\r\n" );
document.write( "\r\n" );
document.write( "The rest is what the account will earn due to compounded percentage.\r\n" );
document.write( "

\r
\n" ); document.write( "\n" ); document.write( "Solved.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "---------------------\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans see the lessons\r
\n" ); document.write( "\n" ); document.write( " - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( " - Solved problems on Ordinary Annuity saving plans \r
\n" ); document.write( "\n" ); document.write( "in this site.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

\n" );