Answer:
The balance in Nick's CD account after 4 years would be approximately $4,702.79.
Explanation:
To calculate the ending balance of Nick's CD account, you can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/ending balance
P = the principal amount (initial deposit) = $4,000
r = the annual interest rate (in decimal form) = 4.18% or 0.0418
n = the number of times that interest is compounded per year = 52 (weekly compounding)
t = the number of years the money is invested for = 4 years
Now, plug these values into the formula and calculate:
A = 4000(1 + 0.0418/52)^(52*4)
A = 4000(1 + 0.00080384615)^(208)
A ≈ 4000(1.00080384615)^208
A ≈ 4000 * 1.17569743
A ≈ $4,702.79