First, we determine the effective interest rate of the given compound interest. ieff = (1 + r/n)^n - 1 where r is the given original rate and n is the number of compounding. In a year, there are approximately 52 weeks. ieff = (1 + 0.07/52)^52 - 1 ieff = 0.07246 = 7.246% Then, we calculate for the future worth of money after five years using the effective interest annually. F = P (1 + r)^n Substituting, F = ($9250)*(1 + 0.07246)^5 = $13,123.29 Thus, the value of the investment after 5 years is approximately equal to $13,123.29.
