Question

How many years (to two decimal places) will it take $15000 to grow to $17500 if it is invested at 8% compounded semi- annually?

Answer 1

Answer:

1.97 years

Step-by-step explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 8/100

r = 0.08 per year,

Then, solve the equation for t

t = ln(A/P) / n[ln(1 + r/n)]

t = ln(17,500.00/15,000.00) / ( 2 × [ln(1 + 0.08/2)] )

t = ln(17,500.00/15,000.00) / ( 2 × [ln(1 + 0.04)] )

t = 1.965 years

:D