Question

How long will it take for a $5000 investment to grow to $ 7945 at an annual rate of 8.6%, compounded semiannually? Assume

that no withdrawals are made.
Do not round any intermediate computations, and round your answer to the nearest hundredth.

Answer 1

5.5 years

Explanation:

Compound interest formula:

`AV=PV(1+(i)/(n))^(n*t)\\7945=5000(1+(.086)/(2))^(2t)\\1.589=1.043^(2t)\\log_(1.043)1.589=2t\\10.9998=2t\\5.5=t`