Your bank will pay you an interest rate of 137 percent compo

Your bank will pay you an interest rate of .137 percent compounded weekly. You want to have $26,000 in 8 years. How much will you have to deposit today? Assume 52 weeks per year.

$14,906.72

$24,213.38

$15,037.48

$14,992.67

$14,710.57

Solution

We use the formula:
A=P(1+r/52)^52n
where
A=future value
P=present value
r=rate of interest
n=time period.

26000=P(1+0.00137)^(52*8)

26000=P*1.767436092

P=$26000/1.767436092

which is equal to

=$14710.57(Approx).