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?
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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.
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.
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