SOLUTION: A money market fund pays 12.8% per year, compounded semiannually. For a deposit of $5000, this compound interest rate is equivalent to what simple interest rate for 1 year? Give yo

SOLUTION: A money market fund pays 12.8% per year, compounded semiannually. For a deposit of $5000, this compound interest rate is equivalent to what simple interest rate for 1 year? Give yo

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Question 592024: A money market fund pays 12.8% per year, compounded semiannually. For a deposit of $5000, this compound interest rate is equivalent to what simple interest rate for 1 year? Give your answer to the nearest tenth of a percent.
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=5000(1+0.128/2)^2
A=5000(1.064)^2
A=5000*1.132
A=5660
-------------
r=I/Pt
r=660/5000
r=0.132=13.2%
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