Question

Zach's parents put $1,500 in her bank account for college tuition. At an interest rate of

8.25% compounded weekly, what will be the balance after 18 years? (Make sure you
answer is in dollars and rounded to 2 decimal places)

Answer 1

After 18 years, Zach's account balance will be $ 6,614.66.

Explanation:

Given that Zach's parents put $ 1,500 in her bank account for college tuition at an interest rate of 8.25% compounded weekly, to determine what will be the balance after 18 years the following calculation must be performed:

1,500 x (1 + 0.0825 / 52) ^ 18x52 = X

1,500 x 1.00158653 ^ 936 = X

6,614.66 = X

Therefore, after 18 years, Zach's account balance will be $ 6,614.66.