SOLUTION: What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.

Question 993970: What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.
----------------
Formula:: A(t) = P(1+(r/n))^(n*t)
--------------
A(1) = P(1+(0.10/2)]^(2*1) = P*1.05^2
-------
Cheers,
Stan H.
---------
RELATED QUESTIONS
What is the effective annual rate of an investment that pays 6% for 5 years, compounded... (answered by fractalier)

What is the future value of an initial investment of $5000 at annual rate of 10% interest (answered by rfer)

14.Determine which of the following investments will have the greater rate of return.... (answered by Theo)

Find the annual percentage yield for an investment that earns 7% per year, compounded... (answered by Theo)

What is the effective yield of a savings account that is compounded semi annually at a... (answered by stanbon)

A bank features a savings account that has an annual percentage rate of 3.2 % with... (answered by Boreal)

Would you have an investment that pays 5% interest compounded semi �annually or the... (answered by Theo)

Suppose that a savings account pays an effective rate of interest of 9 percent. What is... (answered by ankor@dixie-net.com)

Find the annual percentage rate for an investment that earns 6% per year, compounded... (answered by stanbon)