search

# A sum of money invested at 2 per 6 month period (semiannually) wil

Content type
User Generated
Rating
Showing Page:
1/2
A sum of money invested at 2% per 6- month period
(semiannually) will double in amount in approximately how
many years?
Solution
Is it 2% annual interest compounded semiannually? Or is it
2% per 6 mo?
If 2% annual, compounded semiannually,
A=Ao(1+r)^n
A/Ao = 2 = (1+0.02/2)^n = (1.01)^n
ln2 = nln(1.01)
n ? 69.7 semiannual periods ? 69.7/2 years ? 35 years
if 2% per period,
A/Ao = 2 = (1.02)^n
n = ln2/ln(1.02) ? 35 semiannual periods = 17.5 years

Showing Page:
2/2

Unformatted Attachment Preview
A sum of money invested at 2% per 6 - month period (semiannually) will double in amount in approximately how many years? Solution Is it 2% annual interest compounded semiannually? Or is it 2% per 6 mo? If 2% annual, compounded semiannually, A=Ao(1+r)^n A/Ao = 2 = (1+0.02/2)^n = (1.01)^n ln2 = nln(1.01) n ? 69.7 semiannual periods ? 69.7/2 years ? 35 years if 2% per period, A/Ao = 2 = (1.02)^n n = ln2/ln(1.02) ? 35 semiannual periods = 17.5 year s Name: Description: ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

### Review

Anonymous
Nice! Really impressed with the quality.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4