<PRE><B>Question 1202020</B>
f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the growth rate per time period
1 + r is the growth factor per time period.
n is the number of time periods.


if the annual interest rate is compounded weekly, then:
the time periods are in weeks.
the annual growth rate is divided by 52 to get the growth rate per week.
the number of year is multiplied by 52 to get the number of weeks.


you are given:
p = 100,000
r  .03/52 per week.
n = 10 * 52 weeks.


the formula becomes:
f = 100,000 * (1 + .03/52) ^ (52 * 10)
solve for f to get:
f = 134,974.2043 in 520 weeks.
divide 520 weeks by 52 and you get:
f = 134,974.2043 in 10 years.


 


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