Question

A company needs $6,000,000 in 9 years in order to expand their factory. How much should the company invest each week if the investment earns a rate of 5.9% compounded weekly?

Answer 1

To calculate the weekly investment needed, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the desired amount, P is the principal (initial investment), r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, the desired amount is $6,000,000, the interest rate is 5.9%, and the investment is compounded weekly. We need to solve for P, the weekly investment.

Let's plug in the values into the formula:

$6,000,000 = P(1 + 0.059/52)^(52*9)

Now, we can solve for P:

P = $6,000,000 / [(1 + 0.059/52)^(52*9)]

Calculating this will give us the weekly investment amount that the company needs to make in order to reach their goal.