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\%$