#1**+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**0 **

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

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

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

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

!

asinus
Feb 23, 2017

#3**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