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How long will it take for a $2000 investment to grow to $3178 at an annual rate of 8.6%, compounded semiannually? Assume that no withdrawals are made

Respuesta :

Answer:

n = 1

Step-by-step explanation:

Due to it being compounded semiannually, the total amount after n years should be 2000[1+(.086/2)]^2n = 3178.    (A = p(1+r/n)^nt)

Hence, solving this equation:

(1+0.43)^2n = 3178/2000

1.43^2n = 1.589

2n = 2

n = 1

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