Respuesta :
Using compound interest, it is found that the investment will be worth $36,466.76 in 30 years.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
The parameters are given as follows:
P = 12, r = 0.12, n = 52, t = 30.
Hence the amount is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(30) = 1000\left(1 + \frac{0.12}{52}\right)^{52 \times 30}[/tex]
A(30) = $36,466.76
More can be learned about compound interest at https://brainly.com/question/25781328
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