As part of a new labor contract, Acme has agreed to make a one-time contribution of Euros 1,000,000 to the construction of a new physical fitness facility for its employees. This amount will be placed in an account earning E% (E = the fifth digit of SUN). When the account grows to Euros 1,850,000, construction will commence. How long must employees wait until construction of their new gym begins? (Your answer should be accurate to two decimal places, e.g., 1.57 years). Give a detailed explanation on your calculations.

Question

As part of a new labor contract, Acme has agreed to make a one-time contribution of Euros 1,000,000 to the construction of a new physical fitness facility for its employees. This amount will be placed in an account earning E% (E = the fifth digit of SUN). When the account grows to Euros 1,850,000, construction will commence. How long must employees wait until construction of their new gym begins? (Your answer should be accurate to two decimal places, e.g., 1.57 years). Give a detailed explanation on your calculations.

Answer 1

To find the time it takes for the account to grow to Euros 1,850,000, we can use compound interest formula: A = P(1 + r/n)^(nt), where:

A = future value (Euros 1,850,000)
P = principal amount (Euros 1,000,000)
r = annual interest rate (E%)
n = number of times interest is compounded per year (we'll assume it's compounded annually)
t = time in years

We need to find the value of E% to calculate the interest rate. The question mentions that E is the fifth digit of SUN. However, without the value of SUN, we cannot determine the exact interest rate. Please provide the value of SUN to proceed with the calculation.