Question
how long will it take 2,000 to grow to 3,000 if the interest rate used is 6% compounded semi-annually? answer to the nearest half-year. thank you!
Answers
Steve
solve for t in
(1+.06/2)^(2t) = 3000/2000
(1.03)^(2t) = 1.5
2t log1.03 = log1.5
t = log1.5/(2log1.03) = 6.86
So, it will take 13.72 half-years
(1+.06/2)^(2t) = 3000/2000
(1.03)^(2t) = 1.5
2t log1.03 = log1.5
t = log1.5/(2log1.03) = 6.86
So, it will take 13.72 half-years