Answer:
the interest earned= 93.401
and the future value of an annuity= 493.401
Step-by-step explanation:
Given Data:
Interest rate= 7%
time,t = 3 years
weekly payment, P= 400
At the end of 3 years, final investment A= ?
n= 52 as it is weekly
As per the interest formula
A= P(1+r/n)^nt
Putting value in above equation
= [tex]400\left(1+\frac{0.07}{52}\right)^{156}[/tex]
= 493.401
Interest earned = A-P
= 493.401-400
= 93.401 !
