Answer:
The account balance after fifteen years with a $3,725 initial deposit and a 3.75% interest rate compounded weekly would be approximately $6,544.32.
Explanation:
To calculate the future account balance with compound interest, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
Where:
A = the future account balance
P = the principal amount (initial deposit)
r = the interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
Given:
P = $3,725
r = 3.75% = 0.0375 (as a decimal)
n = 52 (weekly compounding, since there are 52 weeks in a year)
t = 15 years
Substituting these values into the formula, we can calculate the future account balance:
A = $3,725 * (1 + 0.0375/52)^(52*15)
A ≈ $6,544.32