SOLUTION: What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.

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Question 993970: What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
What is the annual yield for an investment that earns 10% compounded semi-annually? Please include the formula that you used to solve this problem.
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Formula:: A(t) = P(1+(r/n))^(n*t)
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A(1) = P(1+(0.10/2)]^(2*1) = P*1.05^2
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Cheers,
Stan H.
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