Question 676116
Compounding Interest
Formula: Amount = Principal (1+ Interest rate)^time
=> {{{A=P(1+r)^n}}}

If P = 1 then A = 3*P = 3*1 = 3.
n = 1.5*2 = 3 (compounded semi-annually for 1 and half (1.5) years)
We solve for r;
{{{A=P(1+r)^n}}}
{{{3=1(1+r)^3}}}
{{{3/1=(1+r)^3}}}
{{{3=(1+r)^3}}} raise to the power 3 on both sides to make (1+r)^3 a whole number.
{{{3^(1/3)=((1+r)^3)^(1/3)}}}

{{{3^(1/3)= 1+r}}}


{{{3^(1/3)-1 = r}}}


{{{0.44224957 = r}}}

Hence, the interest rate is 44.22%