Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)
$500/week for 
7
1
2
 years at 5.5%/year compounded weekly

To find the future value (FV) of an ordinary annuity, we can use the following formula:

\[
FV = P \times \left( \frac{(1 + r)^n - 1}{r} \right)
\]

Where:
- $ P $ is the payment amount per period (in this case, $500).
- $ r $ is the interest rate per period.
- $ n $ is the total number of periods.

Let's break down the problem:

1. The payment is $ P = 500 $ dollars per week.
2. The annual interest rate is 5.5%, so the weekly interest rate is:
   \[
   r = \frac{5.5\%}{52} = \frac{0.055}{52}
   \]
3. The total number of periods (weeks) over 7.5 years is:
   \[
   n = 7.5 \times 52 = 390 \text{ weeks}
   \]

Now, let's compute the future value using these values.The future value (FV) of the ordinary annuity is approximately **$241,213.95**.

Would you like more details or have any questions?

Here are 5 related questions to further explore:
1. How would the future value change if the interest rate increased to 6%?
2. What would the future value be if the payments were made monthly instead of weekly?
3. How does the duration (number of years) affect the future value of an annuity?
4. Can the formula be adjusted for different compounding periods, like daily or quarterly?
5. How do changes in the payment frequency (e.g., bi-weekly vs. weekly) impact the final amount?

**Tip:** Always ensure the compounding period matches the payment frequency for accurate annuity calculations.

Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $500/week for 7.5 years at 5.5%/year compounded weekly.

Learn how to calculate the future value of an ordinary annuity with weekly payments of $500 for 7.5 years at an interest rate of 5.5% compounded weekly. This problem explores compound interest, time value of money, and annuity formulas. Perfect for college-level students or advanced high school learners.

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