Question

What would be the interest rate p.a to invest $2000 compounding half_yearly for 4 years to earn $5000?​

Answer 1

24,27% interest rate.

Explanation:

The compound-interest equation is as follows:

Fv=Pv(1+i/n)^(an)

Fv is future value

Pv is present value

i is interest in decimals

n is compount frequency per year

a is lenght of time in years

To easily find the interest rate manipulate the formula to look like this (see pic). Note interest is in decimals and will have to be multiplied by 100 to get %.