SOLUTION: Determine the interest rate necessary for $1500 to amount to $2075 in 6 years with interest compounded semi-annually

Algebra ->  Equations -> SOLUTION: Determine the interest rate necessary for $1500 to amount to $2075 in 6 years with interest compounded semi-annually      Log On


   

Question 853072: Determine the interest rate necessary for $1500 to amount to $2075 in 6 years with interest compounded semi-annually
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

2075%2F1500+=+%281%2Br%2F2%29%5E%2812%29



root%2812%2C+2075%2F1500%29-+1  = r/2

        .0274 = r/2

        .055 = r ,    rate  is 5.5%