Question 107036: 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 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! Answer by edjones(7569) (Show Source):
You can put this solution on YOUR website! A=P(1+r/2)^2
r=-4.07075 not an answer because the rate has to be positive.