Financial Formula

Question

How much money will be in an account if $2500 earns 2.19 % interest, compounded weekly, for 2 years?

Answer 1

FV = PV * (1 + i)ⁿ

 

Problem is, this is compounded weekly, not annually.  So, we must make adjustments:

 

   FV = 2,500 * (1 + 0.0219/52.5)^{52.5 * 2 = 105}

 

     FV = 2,500 (1.00041714285)¹⁰⁵

 

     FV = 2,500 * 1.044763838

 

    FV = $2,611.91

 

So, the investor would have $2,611.91 after 2 years, with 2.19% compounded weekly for that 2 years.