Respuesta :
The interest Nolan will earn after 7 years of time lapse, with the given figures, is $4,863,465 approx.
How to calculate compound interest's amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% per unit time, and it is left for T unit of time for that simple interest, then the interest amount earned is given by:
[tex]CI = P(1 +\dfrac{R}{100})^T - P[/tex]
For the considered case, the unit of time is weekly.
In 7 years, there can be at least 1 leap year, and at max 2 leap years.
In 7 years, therefore, the number of days are between [tex]6 \times 365 + 366[/tex] and [tex]6 \times 365 + 366+1[/tex] or say in between 2556 and 2557
Since each week has 7 days, therefore, the number of weeks these days will have is approx [tex]\dfrac{2556}{7} \approx 365.14[/tex] (assumed there are 2556 days in 7 years).
This approximates to 365 weeks (integer quantity)
Thus, we get:
- Unit of time is week
- Rate of interest per week = 2.12%
- Type of interest applied = Compound interest
- Units of week for which interest is applied is approx 365
- Initial amount deposited = $2300
Thus, the amount of interest that Nolan will earn is approx:
[tex]CI = P(1 +\dfrac{R}{100})^T - P\\\\CI \approx 2300(1 + 0.0212)^{365} - 2300 \approx 2300 \times 2115.65 - 2300\\CI \approx \$4,863,465[/tex]
Thus. the interest Nolan will earn after 7 years of time lapse, with the given figures, is $4,863,465 approx.
Learn more about compound interest here:
https://brainly.com/question/11897800
