Revision as of 13:46, 26 November 2023 by Admin (Created page with "How many years will it take to double your money if you invest an amount A now at a nominal rate of 4% compounded semiannually? <ul class="mw-excansopts"> <li>17</li> <li>17.5</li> <li>17.7</li> <li>18</li> <li>18.5</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = University of Windsor Old Tests 62-392 Theory of Interest | access-date=November 23, 2023}}")
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ABy Admin
Nov 26'23

Exercise

How many years will it take to double your money if you invest an amount A now at a nominal rate of 4% compounded semiannually?

  • 17
  • 17.5
  • 17.7
  • 18
  • 18.5

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

ABy Admin
Nov 26'23

Solution: B

[[math]] 2=\left(1+\frac{i^{(2)}}{2}\right)^n=(1.02)^{2 n} \implies 2 n=\ln (2) / \ln (1.02)=35.0028 \implies n=17.50 [[/math]]

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

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