Answer:
$702.37
Step-by-step explanation:
-Lets take 1 year has 52 weeks.
#Effective interest rate for 3.4% compounded weekly:
[tex]i_m=(1+i/m)^m-1\\\\=(1+0.034/52)^{52}-1\\\\=0.03457[/tex]
#We use the effective rate to calculate the compounded amount after 10 years as follows:
[tex]A=P(1+i)^n\\\\=500(1.03457)10\\\\=702.37[/tex]
Hence, the compounded amount after 10 years is $702.37
The amount of interest should be $702.37.
Since it earns 3.4% interest compounded weekly. The original amount deposited was $500 and the time period is 10 years
So, the Effective interest rate is
[tex]= (1 + 3.4\%\div 52)^{52} - 1[/tex]
= 0.03457
Now the interest should be
[tex]= 500 \times (1.03457)^{10[/tex]
= $702.37
Hence, we can conclude that the amount of interest should be $702.37.
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