You deposit $470 each week into an account earning2.3% interest compounded weekly.a) How much will you have in the account in 35 years?b) How much total money will you put into theaccount?c) How much total interest will you earn?

Information Provided: Weekly deposit = $470 Interest rate = 2.3% compounded weekly Period = 35…

Answered: a) How much will you have in the…

a) How much will you have in the account in 35 years? LA b) How much total money will you put into the account? LA c) How much total interest will you earn? tA

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You deposit $470 each week into an account earning
2.3% interest compounded weekly.
a) How much will you have in the account in 35 years?
b) How much total money will you put into the
account?
c) How much total interest will you earn?

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