Determine the final value for Compound interest problems

The video tutorial explains compound interest, starting with the concept and moving through a practical example. It uses an initial investment of $5000 with an 8% annual interest rate compounded weekly over 30 years. The tutorial walks through the calculation process, including converting the interest rate to a weekly rate and using the compound interest formula. The final result shows how the investment grows to $55,014.37 after 40 years, demonstrating the power of compound interest.

What is the initial investment amount mentioned in the compound interest example?

• $3000

• $5000

• $8000

• $10000

How often is the interest compounded in the given example?

• Annually

• Quarterly

• Monthly

• Weekly

What is the formula used to calculate the final amount in compound interest?

• A = P + rt

• A = P(1 + r/n)^(nt)

• A = P(1 + rt)

• A = P(1 - r/n)^(nt)

How many weeks are considered in a year for weekly compounding?

• 52

• 51

• 50

• 53

What is the final amount after 40 years of compounding the initial investment?

• $50,000

• $60,000

• $45,000

• $55,014.37