Question

1144311JUMI ted: Oct 10 at 2:25pm Quiz Instructions nce you start the quiz, you will have 70 minutes to complete it. You must do your own work, and not take any assistance on the uestions from anyone. You can refer to your book or notes Question 11 0.1 pts Anne plans to save $40 a week, starting next week for ten years and earn a rate of return of 46 percent compounded weekly. After the ten years, she will discontinue saving and invest her account at 6.5 percent compounded annually. How long from now will it be before she has accumulated a total of $50,000? 20:32 years 10:32 years 2114 1508 year Insert PASO т ү и т о р т

Answer 1

Ans 10.32 years

Value after 10 years
Future Value of Annuity =	P ( (1 + r)n - 1 ) / r
Future Value of Annuity =	40* ((1 + 4.6%/52)^520 - 1) / (4.6%/52)
Future Value of Annuity =	26395.74
After 10 years, time to reach to $ 50000
FV =	PV (1 + r )n
50000 =	26395.74*(1+6.5%)^n
50000 / 26395.74 =	1.065^n
1.89424505620983 =	1.065^n
n =	10.32 years