invested $4,000 in an account that paid 2.3% annual interest compounded weekly able to pay $5,000 for his new lathe. How much is in his account after 10 years?

Question

I know the answer I just need to show the work that I don't know how to do for the problem. 

Answer 1

The future value of a lump sum payment is

 

Future Value =  Present Value * (1 + interest rate/52 weeks)^{number of years*52}

 

Future Value in 10 years  = $4,000 * (1+.023/52)⁵²⁰

 

Future Value = $4,000 * 1.258536 =  $5,034.14