Given that <span>Nelson took out a home loan that compounds interest semiannually, and the following expression represents the payable amount after t years. 150,000(1.102)^2t which follow the formal for compound interest given by: A=P(1+r/n)^tn where: A=future amount P=principle r=rate n=number of terms t=time in our example: </span>1+r/n=1.012 this implies that: r/n=0.012 number of terms=2 (it's semiannual) thus r/(2)=0.012 hence r=0.012*2 r=0.024 hene thus the answer is: r=0.024~2.4%
