The formula for computing the amount A of an investment of principal P invested at interest rate r for 1 year and compounded semiannually is A = P(1 + r/2)^2. Approximately what interest rate is necessary for $1,000 to grow to $1,095, in 1 year if the interest is compounded semiannually?|||A = 1095 (final amount)
P = 1000 (starting amount)
and everything else is the same.
just solve algebraically.
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