If you deposit $1,000 into an account which pays 7% interest per annum, compound

Question

If you deposit $1,000 into an account which pays 7% interest per annum, compounded weekly, how much will be in your account after 10 years have passed? Answer $2,331 $2,044 $2,825 $1,985 $2,013 If you deposit $1,000 into an account which pays 7% interest per annum, compounded weekly, how much will be in your account after 10 years have passed? If you deposit $1,000 into an account which pays 7% interest per annum, compounded weekly, how much will be in your account after 10 years have passed? $2,331 $2,044 $2,825 $1,985 $2,013 $2,331 $2,044 $2,825 $1,985 $2,013

Explanation / Answer

Saving Int rate = 7% weekly compnfdng.

One year has 52 weeks.

So Rate = 7%/52

Tenure = nper = 10Yr*52week/Yr = 520

Present value = PV=1000

Weekly deposit = PMT = 0

So Maturity Value = FV(Rate,nper,pmt,pv)

=FV(7%/52,520,0,1000) = $2,013

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