SOLUTION: Rachel Spender wants to invest $4000 in savings certificates which bear an interest rate of
7.25% compounded semi-annually. How long a time period should she choose order to
save
Algebra.Com
Question 1137955: Rachel Spender wants to invest $4000 in savings certificates which bear an interest rate of
7.25% compounded semi-annually. How long a time period should she choose order to
save an amount of $4700?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
4700=4000(1+(0.0725/2)^2n
1.175=(1.03625)^2n
logs both sides
0.07004=2n(0.01546)
2n=4.53
n=2.26 years
4 compoundings or 2 years is $4612.31
5 compoundings is 2.5 years and $4779.50
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