Find the present value of $10,000 if interest is paid at a rate of 7% per year, compounded weekly, for 5 years.

Jamar Hays 2022-09-13 Answered
Find the present value of $10,000 if interest is paid at a rate of 7% per year, compounded weekly, for 5 years.
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Answers (1)

Hofpoetb9
Answered 2022-09-14 Author has 17 answers
we need compound interest formula
A = P ( 1 + r n ) n t
A = Amount you end up with
P= Principal
r = Interest rate
n= Number of compoundings a year
t= Number of years
So substitute the value you are given
10000 = P ( 1 + 0.07 52 ) 52 × 5 10000 = P ( 52.07 52 ) 260 P = $ 7716.04
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