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This Portfolio Was Started 2 Years Ago. What Is the Current Value of the Portfolio? - Weekly Deposits of 50 into an Account Earning

Question

This portfolio was started 2 years ago. What is the current value of the portfolio? - Weekly deposits of 50 into an account earning 1.5% compounded weekly - A 2500 investment averaging 3.25% compounded semi-annually

Solution

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Answer

### 7946.59$

Explanation

## Step 1: Calculate the total weekly deposits.### There are 52 weeks in a year, so over 2 years there are weeks. The total deposit is 50 = \ .## Step 2: Calculate the future value of the weekly deposits.### The weekly interest rate is . The number of compounding periods is 104. Using the future value of an ordinary annuity formula: , where , , and . 5278.87 2500 investment.### The semi-annual interest rate is . The number of compounding periods over 2 years is . Using the compound interest formula: , where , , and . 2667.72 \ 2667.72 = \ .