SOLUTION: Randy has a savings bond that will be worth $6950 in even years The bond has an interest rate of 3% that is compounded semiannually. What is the percent value of the bond?

Question 176108: Randy has a savings bond that will be worth $6950 in even years The bond has an interest rate of 3% that is compounded semiannually. What is the percent value of the bond?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Randy has a savings bond that will be worth $6950 in seven years The bond has an interest rate of 3% that is compounded semiannually. What is the percent value of the bond?
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A(t) = (1+(r/n))^(nt)
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6950 = (1 + (r/2))^(2*7)
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log6950 = 14log(1+(r/2))
log(1+(r/2)) = 0.2744275
1+(r/2) = 10^0.2744375
1+ (r/2) = 1.8811676
r/2 = 0.8811676
r = 1.76233
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Cheers,
Stan H.
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