document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=858982>Question 858982</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hello,\r<BR>\n" );
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document.write( "I've been trying to answer the following for a while now and could really use the help: \r<BR>\n" );
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document.write( "Three years ago Greg invested $1000 at a fixed interest rate compounded every 6 months.  His investment is currently valued at $1400. What is the rate of interest he received? ( Round to 2 decimal places.)\r<BR>\n" );
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document.write( "So far I've tried \r<BR>\n" );
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document.write( "	PV = FV / (1+r/2)n<BR>\n" );
document.write( "		1400=1000/(1+r/6)6<BR>\n" );
document.write( "		1.4=(1+r/6)^6<BR>\n" );
document.write( "		6&#8730;1.4=(1+r/6)^6<BR>\n" );
document.write( "		3.596= (1+r/6)<BR>\n" );
document.write( "		3.596-1=r/6<BR>\n" );
document.write( "		2.596=r/6<BR>\n" );
document.write( "		2.596*6=r<BR>\n" );
document.write( "		r=15.576131089623319071790108554192<BR>\n" );
document.write( "		r=15.58\r<BR>\n" );
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document.write( "But according to an interest calculator I found online, the answer is actually a bit over 11%. Am I even on the right path? if so, where did I go wrong?\r<BR>\n" );
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document.write( "Thank you in advance for your help! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #517458 by </B><A HREF=/tutors/aboutme.mpl?userid=Alan3354><B>Alan3354(69443)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Alan3354><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Alan3354><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=517458\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Three years ago Greg invested $1000 at a fixed interest rate compounded every 6 months. His investment is currently valued at $1400. What is the rate of interest he received? ( Round to 2 decimal places.) <BR>\n" );
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document.write( "3 yrs = 6 compounding periods<BR>\n" );
document.write( "r = rate per 6 months<BR>\n" );
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document.write( "1400 = 1000*(1 + r)^6<BR>\n" );
document.write( "(1 + r)^6 = 1.4<BR>\n" );
document.write( "6*log(1 + r) = log(1.4)<BR>\n" );
document.write( "log(1 + r) = log(1.4)/6 =~ 0.024355<BR>\n" );
document.write( "1 + r = 10^0.024355<BR>\n" );
document.write( "r = 10^0.024355 - 1<BR>\n" );
document.write( "r =~ 0.05768 per 6 months<BR>\n" );
document.write( "Annual rate = 2*r = 0.11536<BR>\n" );
document.write( "= 11.54% per year </SPAN>\n" );
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