document.write( "Question 676947: An investment of $10000 is guaranteed to have a return of $25000 in 20 years. If the interest is compounded semi-annually, what is the annual interest rate? \n" ); document.write( "
Algebra.Com's Answer #420639 by jim_thompson5910(35256)\"\" \"About 
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\n" ); document.write( "\n" ); document.write( "\"A=P%281%2Br%2Fn%29%5E%28n%2At%29\" Start with the compound interest formula\r
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\n" ); document.write( "\n" ); document.write( "\"25000=10000%281%2Br%2F2%29%5E%282%2A20%29\" Plug in \"A=25000\", \"P=10000\", \"n=2\" and \"t=20\".\r
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\n" ); document.write( "\n" ); document.write( "\"25000=10000%281%2Br%2F2%29%5E%2840%29\" Multiply \"2\" and \"20\" to get \"40\".\r
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\n" ); document.write( "\n" ); document.write( "\"25000%2F10000=%281%2Br%2F2%29%5E%2840%29\" Divide both sides by \"10000\".\r
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\n" ); document.write( "\n" ); document.write( "\"2.5=%281%2Br%2F2%29%5E%2840%29\" Evaluate \"25000%2F10000\" to get \"2.5\".\r
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\n" ); document.write( "\n" ); document.write( "\"root%2840%2C2.5%29=1%2Br%2F2\" Take the 40th root of both sides.\r
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\n" ); document.write( "\n" ); document.write( "\"1.02317165469772=1%2Br%2F2\" Take the 40th root of \"2.5\" to get \"1.02317165469772\".\r
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\n" ); document.write( "\n" ); document.write( "\"1.02317165469772-1=r%2F2\" Subtract 1 from both sides.\r
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\n" ); document.write( "\n" ); document.write( "\"0.0231716546977176=r%2F2\" Combine like terms.\r
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\n" ); document.write( "\n" ); document.write( "\"2%2A0.0231716546977176=r\" Multiply boths sides by \"2\" to isolate \"r\".\r
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\n" ); document.write( "\n" ); document.write( "\"0.0463433093954353=r\" Multiply \"2\" and \"0.0231716546977176\" to get \"0.0463433093954353\".\r
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\n" ); document.write( "\n" ); document.write( "\"r=0.0463433093954353\" Rearrange the equation.\r
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\n" ); document.write( "\n" ); document.write( "\"r=0.0463\" Round to the nearest ten-thousandth.\r
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\n" ); document.write( "\n" ); document.write( "So the interest rate is 4.63% (multiply by 100 to convert to a percentage)
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