Question

. Kaiden deposited $6200 into a savings account for which interest is compounded weekly at a rate of 2.77%.

How much interest will he earn after 8 years

Answer 1

"Compounded weekly" means that Kaiden is paid interest (just a little) every week! Thus, he/she is paid interest 52 times per year.

The formula for the Amount when interest is compounded n times per year is

\[A = P ( 1 +\frac{ r }{ n })^{nt}\] where P is the principal amount, r is the interest rate, n is the number of times interest is paid each year, and t is the number of years.

Can you finish this problem?