Yield

Problem:



Solution:

a)
In order to calculate that, we need to know the weekly grow rate, which is $1 + \frac{0.065}{52}$.
He invests for 5 years, that will have a grow factor of $(1 + \frac{0.065}{52})^(52 \times 5) = 1.383749777$.

Therefore he need to save $\frac{10000}{1.383749777} = 7226.740097$ to reach his goal.

b)
The annual growth factor is $(1 + \frac{0.065}{52})^(52) = 1.067115708$, therefore the Annual Percentage yield is $1.067115708 - 1 = 0.067115708 = 6.711570802 \%$.

c)
The 5 year percentage change is simply $1.383749777 - 1 = 0.383749777 = 38.37497773\%$