+0  
 
0
58
3
avatar

3=(1+i/52)^260

Guest Feb 22, 2017
Sort: 

3+0 Answers

 #1
avatar
+5

3=(1+i/52)^260 Take the log of both sides,

Log(1 +i/52) = Log(3) / 260

Log(1 +i/52) =0.00183508

1 + i/52 =1.00423437

i/52 = 1.00423437 - 1

i/52 =0.00423437

i = 52 x 0.00423437

i =0.2202 x 100

i =22.02% - This is the interest rate compounded weekly to have $1 grow to $3 in 260 weeks, or in 5 years.

Guest Feb 22, 2017
 #2
avatar+6683 
0

3=(1+i/52)^260 ?

 

\(3=(1+\frac{\sqrt{-1}}{52})^{260}\ ?\)

 

\((1+\frac{\sqrt{-1}}{52})^{260}=0.297010213218-1.00632687949\ i\)

 

\(\Large3\neq 0.297010213218-1.00632687949\ i\)

 

laugh !

asinus  Feb 23, 2017
 #3
avatar+89764 
0

3=(1+i/52)^260

 

Hi asinus

If you look at this question it is reasonable to assume that i is not the imaginary i but rather that

i stands for interest rate.

 

It is the formula for compound interest

It is asking what nominal yearly rate compounded monthly will turn $1 into $3 in the space of 260 weeks

 

Just as our guest has already explained :)

Melody  Feb 23, 2017

9 Online Users

avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details