Question

Suppose that you win $420,000 in a lottery. If this money is invested in a fund paying 6.5% compounded weekly, how long (in weeks) will you need to wait to become a millionaire?
thank you in advance!

Answer 1

We have P = 420000
              r  = 6.5/(52*100 )
              A =1000000
let t be the time in weeks
We have A= P(1+r)^t
 ⇒  1000000 = 420000(1+6.5/5200)^t
 ⇒  50/21=(1+.00125)^t
⇒ 50/21=1.00125^t
⇒ t =  694 weeks
You have to wait 694weeks to become a millionaire.