Nancy's Exciting Investment Journey

What is Nancy's account balance after 24 years?

Nancy is investing $27,000 in an account paying 7.25% interest compounded weekly. What will Nancy's account balance be in 24 years?

Nancy's Account Balance Calculation

If Nancy is investing $27,000 in an account paying 7.25% interest compounded weekly, her account balance in 24 years will be $153,641.97.

Let's break down Nancy's exciting investment journey and how we arrived at the account balance of $153,641.97 after 24 years.

Understanding the Calculation

Given: Principal amount (P) = $27,000 Annual interest rate (r) = 7.25% = 0.0725 Number of times interest is compounded per year (n) = 52 (weekly) Number of years (t) = 24

To calculate Nancy's account balance after 24 years, we can use the compound interest formula:

A = P * (1 + r/n)^(n*t)

Plugging in the values:

A = $27,000 * (1 + 0.0725/52)^(52*24)

A = $153,641.97

Therefore, Nancy's account balance after 24 years will be $153,641.97. An exciting journey indeed!