SOLUTION: hans opens a savings account by depositing $1200 in an account that earns 3% interest compounded weekly. how much will his investment be worth in 10 years? assume there are exactly

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Question 742265: hans opens a savings account by depositing $1200 in an account that earns 3% interest compounded weekly. how much will his investment be worth in 10 years? assume there are exactly 52 weeks in a year and round your answer to the nearest cent
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Use the compound interest formula:

A = P(1+r/n)^(n*t)

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where

A = amount in the account after t years
P = initial amount invested
r = interest rate (in decimal form)
n = compounding frequency
t = number of years

In this case

A = unknown (we're solving for this)
P = 1200
r = 0.03 (3% = 3/100 = 0.03)
n = 52 (we're compounding the amount in the account 52 times a year)
t = 10

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Plug all these values into the equation to get...

A+=+P%281%2Br%2Fn%29%5E%28n%2At%29

A+=+1200%281%2B0.03%2F52%29%5E%2852%2A10%29

A+=+1200%281%2B0.000576923076923077%29%5E%2852%2A10%29

A+=+1200%281.00057692307692%29%5E%2852%2A10%29

A+=+1200%281.00057692307692%29%5E%28520%29

A+=+1200%281.34974204283122%29

A+=+1619.69045139747

A+=+1619.69 Don't forget to round to the nearest penny.

So his investment will be worth $1,619.69 in 10 years.