Question

At what rate of interest compounded semi-annually will 14, 300.00 accumulate to 17,000.00 in 2 years and 6 months?

Answer 1

semiannually = twice a year = once every 6 months

`14300 {(1 + (r)/(2)) }^(30) = 17000`

`{(1 + (r)/(2) )}^(30) = (170)/(143)`

`1 + (r)/(2) = \sqrt[30]{ (170)/(143) }`

`(r)/(2) = \sqrt[30]{ (170)/(143) } - 1`

`r = 2( \sqrt[30]{ (170)/(143) } - 1) = .0116 = 1.16\%`