Respuesta :
Given:
Principal value = 4580
Rate of interest = 6% apr compounded weekly
To find:
The total amount after 2 years.
Solution:
The formula for amount is
[tex]A=P\left(1+\dfrac{r}{100n}\right)^{nt}[/tex]
Where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is number of years.
1 year = 52 week
n=52
Putting P=4580, r=6, n=52, t=2 in the above formula, we get
[tex]A=4580\left(1+\dfrac{6}{100(52)}\right)^{52\times 2}[/tex]
[tex]A=4580\left(1+\dfrac{6}{5200}\right)^{104}[/tex]
[tex]A=4580\left(1+\dfrac{3}{2600}\right)^{104}[/tex]
[tex]A=4580\left(\dfrac{2603}{2600}\right)^{104}[/tex]
On further simplification, we get
[tex]A=4580(1.1274188)[/tex]
[tex]A=5163.5781[/tex]
[tex]A\approx 5163.58[/tex]
Therefore, the ending balance after 2 years is 5163.58.
