6%pa compounded semi-annually
Principal-$6000
I need to find out how many interest periods for the amount to grow to $9500.
What is the formula too pleae.
Each interest period increases the principal by 3%. After N six-month interest periods,
Principal = 9500 = 6000*(1.03)^N
9500/6000 = 1.58333 = 1.03^N
N = Log1.58333/Log1.03= 15.55
If compounding only occurs once every six months, you will need to 16 interest periods to raise the principal above $9500