SOLUTION: What principle will amount to $1500 if invested at 5% compounded semi-annually for 14years?

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Question 1102554: What principle will amount to $1500 if invested at 5% compounded semi-annually for 14years?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
Compound interest formula
P=Po(1+r/t)^nt; r rate, t number of compoundings per year, n number of years
P=1500(1+0.025)^28
don't round until the end
=$2994.74
rule of 72 predicts doubling in 72/5=14.2 years.
Rule of 70 is closer and predicts doubling in 14 years.