Posted by **Anonymous** on Sunday, November 21, 2010 at 8:36pm.

) An investment of $37,000 was deposited in the bank. Interest was computed on a semiannual basis and was kept there for 10 years. If the maturity value of this investment is $74,000, at what interest rate was it invested?

- Compounded Interest -
**Damon**, Sunday, November 21, 2010 at 8:44pm
20 periods

every period amount is multiplied by (1+r)

where r = half the percent rate/100

74,000 = 37,000 (1+r)^20

2 = (1+r)^20

log 2 = 20 log(1+r)

log(1+r) = .01505

1+r = 10^.01505 = 1.03526

r = .035

2r = .07 or 7%

## Answer This Question

## Related Questions

- Investment interest - Scenario: A client comes to you for investment advice on ...
- Math - Lance Jackson deposited $5,000 at Basil Bank at 9% interest compounded ...
- math/ compounded - Scenario: A client comes to you for investment advice on his...
- Can somebody answer this question????????????????? - Lance Jackson deposited $5,...
- Algebra - Greta invests $10,000 in an investment that pays 3% interest, ...
- math - A client comes to you for investment advice on his $500,000 winnings ...
- math - A client comes to you for investment advice on his $500,000 winnings ...
- arithmetic - An investment of $2,000 is earning interest at the rate of 6.2% ...
- Business Math - Alicia Eastman deposited $2,000 in a savings account at the ...
- Business Math - Alicia Eastman deposited $2,000 in a savings account at the ...

More Related Questions