SOLUTION: An investment of $37,000 was deposited in the bank. Interest was computed on a semi-annual basis and was kept there for 10 years. If the maturity value of this investment is $74,

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Question 346550: An investment of $37,000 was deposited in the bank. Interest was computed on a semi-annual basis and was kept there for 10 years. If the maturity value of this investment is $74,000, at what interest rate was it invested?
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Investment = 37000
FV= 74,000
years = 10
compunded semi annual =2
number of periods = 2*10 = 20
r=%28FV%2FPV%29%5E%281%2Fn%29+-1
r=+%28%2874000%2F37000%29%5E%281%2F20%29%29-1%29
r=0.0352
=7.052% /year