A couple deposits $17,000 into an account earning 3% annual interest for 20 years. Calculate the future value of the investment if the interest is compounded weekly. Round your answer to the nearest cent.

Answer 1

To calculate the future value of the investment with weekly compounding interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (initial deposit) = $17,000
r = annual interest rate = 3% = 0.03
n = number of times interest is compounded per year = 52 (weekly compounding)
t = number of years = 20

Plugging in the values:

A = $17,000(1 + 0.03/52)^(52*20)
A = $17,000(1 + 0.000576923)^(1040)
A = $17,000(1.000576923)^(1040)
A = $17,000(2.19682)
A = $37,458.94

Therefore, the future value of the investment after 20 years with weekly compounding interest is $37,458.94.