# SOLUTION: Hi, Please help me solve this problem: The formula for computing the amount A of an investment of principal P invested at interest rate r for 1 year and compounded semiannual

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Question 107036: Hi,
The formula for computing the amount A of an investment of principal P invested at interest rate r for 1 year and compounded semiannually is A=P(1+r/2)^2. Approximately what interest rate is necessary for \$1,000 to grow to \$1,075 in 1 year if the interest is compounded semiannually?
Thank you!