Four years ago Jonathan had started his saving for his dream holiday in Hawai by putting a lump sum of $20,000 into an investment portfolio. The portfolio has been paying a rate of returns of 11.5% per year, compounding weekly.

 

Required:

1. Calculate how much money Jonathan has accumulated by his investment portfolio now? 

 If Jonathan would like to have totally $50,000 for his dream holiday and moves all the saving accumulated from current portfolio to another instrument that pays the interest rate of 15.5% per year, compounding annually. How long will it take for Johnathan to reach his target of $50,000 ?