SOLUTION: how much % a person shall lend his money to gain a compound of 3 times of its principal amount if interest is calculated halfyearly componded in 1 and half year?

Question 676116: how much % a person shall lend his money to gain a compound of 3 times of its principal amount if interest is calculated halfyearly componded in 1 and half year?
Answer by Sarpi(32) (Show Source): You can put this solution on YOUR website!
Compounding Interest
Formula: Amount = Principal (1+ Interest rate)^time
=>
If P = 1 then A = 3*P = 3*1 = 3.
n = 1.5*2 = 3 (compounded semi-annually for 1 and half (1.5) years)
We solve for r;

raise to the power 3 on both sides to make (1+r)^3 a whole number.

Hence, the interest rate is 44.22%

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