Question

Find the time required for an investment of 5000 dollars to grow to 8400 dollars at an interest rate of 5.8 percent per year, compounded weekly.

Answer 1

It will take 464 weeks.

Step-by-step explanation:

Giving the following information:

Future value (FV)= $8,400

Present value (PV)= $5,000

Interest rate (i)= 0.058/52= 0.00112

To calculate the number of weeks required to reach the objective, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)

n= ln(8,400/5,000) / ln(1.00112)

n= 463.47 = 646