document.write( "Question 1181316: A company needs $7,700,000 in 14 years in order to expand their factory. How much should the company invest each week if the investment earns a rate of 6.5% compounded weekly? \n" ); document.write( "
Algebra.Com's Answer #811240 by ikleyn(52803)\"\" \"About 
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\n" ); document.write( "A company needs $7,700,000 in 14 years in order to expand their factory.
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document.write( "This problem is about a weekly payment for Ordinary Annuity saving plan.\r\n" );
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document.write( "The formula for the Ordinary Annuity saving plan is\r\n" );
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document.write( "f = \"p+%2A+%28%28%281+%2B+r%29%5En-1%29%2Fr%29\",\r\n" );
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document.write( "f is the future value\r\n" );
document.write( "p is the monthly payment\r\n" );
document.write( "r is the interest rate per time period\r\n" );
document.write( "n is the number of time periods.\r\n" );
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document.write( "In your problem:\r\n" );
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document.write( "time periods are weeks.\r\n" );
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document.write( "f = 7700000\r\n" );
document.write( "p = the weekly deposit amount, which you want to find\r\n" );
document.write( "r = 0.065/12\r\n" );
document.write( "n = 14 years * 52 weeks = 728 payment periods\r\n" );
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document.write( "formula becomes 7700000 = \"p%2A%28%281+%2B+0.065%2F52%29%5E728-1%29%2F%28%280.065%2F52%29%29\"\r\n" );
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document.write( "solve for p to get:\r\n" );
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document.write( "p = \"%287700000%2A%280.065%2F52%29%29+%2F+%28%281+%2B+0.065%2F52%29%5E728-1%29%29\" = 6490.62\r\n" );
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document.write( "The company should deposit $6490.62 weekly in order to have $7,700,000 in 14 years at 6.5% per year compounded weekly.\r\n" );
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document.write( "Interesting, that the company's total direct deposit will be only  $6490.62*52*14 = 4,725,171.36  dollars.\r\n" );
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document.write( "The rest is the interest which the account will earn.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans \r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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