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You have just won $160,000 from a lottery. If you invest all this amount in a...

You have just won $160,000 from a lottery. If you invest all this amount in a tax-free money market fund earning 8% compounded weekly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)

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Answer #1

FV = PV(1 + r)n

$1,000,000 = $160,000[1 + (0.08/52)]n

6.25 = [1.0015]n

ln(6.25) = n[ln(1.0015)]

1.8326 = n[0.0015]

n = 1,192.09

n = 22.92(in years)

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