document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1160384>Question 1160384</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that a savings account pays an effective rate of interest of 9 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually?\r<BR>\n" );
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document.write( "Thank you for any help in advance! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #783680 by </B><A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><B>ankor@dixie-net.com(22740)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><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=ankor@dixie-net.com><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=783680\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Suppose that a savings account pays an effective rate of interest of 9 percent.<BR>\n" );
document.write( " What is the equivalent annual compound interest rate if interest is compounded semi-annually?<BR>\n" );
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document.write( "Let a = the initial amt of the account<BR>\n" );
document.write( "let i = the equiv interest rate<BR>\n" );
document.write( "then the resulting annual amt = 1.09a<BR>\n" );
document.write( "Compounded semi-annually<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=a%2A%281%2B%28i%2F2%29%29%5E2 ALIGN=MIDDLE  ALT=\"a%2A%281%2B%28i%2F2%29%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" > = resulting amt compounded semi-annually<BR>\n" );
document.write( ";<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=a%2A%281%2B%28i%2F2%29%29%5E2 ALIGN=MIDDLE  ALT=\"a%2A%281%2B%28i%2F2%29%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 1.09a<BR>\n" );
document.write( "simplify, divide both sides by a<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2B%28i%2F2%29%29%5E2 ALIGN=MIDDLE  ALT=\"%281%2B%28i%2F2%29%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 1.09<BR>\n" );
document.write( "find the square root of both sides<BR>\n" );
document.write( "1 + <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=i%2F2 ALIGN=MIDDLE  ALT=\"i%2F2\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=sqrt%281.09%29 ALIGN=MIDDLE  ALT=\"sqrt%281.09%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=i%2F2 ALIGN=MIDDLE  ALT=\"i%2F2\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=sqrt%281.09%29 ALIGN=MIDDLE  ALT=\"sqrt%281.09%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > - 1<BR>\n" );
document.write( "multiply both sides by 2<BR>\n" );
document.write( "i = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2%28sqrt%281.09%29-1%29 ALIGN=MIDDLE  ALT=\"2%28sqrt%281.09%29-1%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "using your calc<BR>\n" );
document.write( "i = .08806 or 8.8% equiv compound interest<BR>\n" );
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