Question 1193454
Find the rate compounded semi-annually if 30,000 is the present value
of 55,000 due at the end of 4 years.
<pre>Use the Present Value formula for single amount of $1, or {{{matrix(1,3, "A|FV", "=", PV(1 + (i/m)^(mt)))}}}
                                                    {{{matrix(5,3, "55,000", "=", "30,000"(1 + i/2)^(2(4)), "55,000"/"30,000", "=", (1 + i/2)^8, 11/6, "=", (1 + i/2)^8, (11/6)^(1/8), "=", 1 + i/2, 2(11/6)^(1/8), "=", 2 + i)}}}
                               <font color = red><font size = 4><b>Interest rate</font></font></b>, or {{{highlight_green(matrix(1,7, 2(11/6)^(1/8) - 2, "=", highlight(i), "=", 
"0.157422357,", or, highlight("15.74%")))}}}</pre>