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%

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