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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 7% 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

weekly rate = 7/52 = .13462%

Number of periods = IN[Future value /present value]/IN[[1+i]

             =IN[1,000,000/ 160,000] /IN [1+.0013462]

            = IN[6.25]/IN [1.0013462]

            = 1.8325815 / .0013453

             = 1362.21 Weeks or [1362.21/52]   = 26.20 years

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