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An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 years? An initial investment of $100,000 at 12% interest is compounded weekly (use 52 weeks in a year). What will the investment be worth in 30 years?

Round your answer to the nearest dollar. Do not include the dollar sign in your answer.

Respuesta :

Answer:

$3644675.9

Step-by-step explanation:

The initial investment is $100000. The interest rate is 12%.  

We are asked to determine the final amount the investment will become after 30 years if the interest is compounded weekly.

The weekly interest rate is [tex]\frac{12}{52} = 0.231[/tex]%.

Assuming 1 year equivalent to 52 weeks.

Hence, using the formula of compound interest the final sum will be  

[tex]100000(1 + \frac{0.231}{100} )^{(30 \times 52)}[/tex]

= $3644675.9 (Approximate)

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