Answer:
[tex]\$1,282.28[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=25\ years\\ A=\$20,000\\ r=0.11\\n=52[/tex]
substitute in the formula above
[tex]20,000=P(1+\frac{0.11}{52})^{52*25}[/tex]
[tex]20,000=P(1.0021)^{1,300}[/tex]
[tex]P=20,000/(1.0021)^{1,300}[/tex]
[tex]P=\$1,282.28[/tex]
