HELP! i know this is an easy question to solve but i need some help. THANKS for any help in advance!(adsbygoogle = window.adsbygoogle || []).push({});

QUESTION: Determine, to the nearest half year, how long it will take $100 to amount to $500 at 6 1/2% compounded semi-annually.

Using the formula A=P(1 + i)*to the power of*n

where A is the final amount, P is the present value, i is the interest rate and n is the number of compounding periods i have gotten to:

A=$500 P=$100 i=6.5%/2 (because it's semi-annually)=3.25% n=2 x n (because it's semi-annually)

In the FORMULA"

A = P(1+i)*to the power of*n

500 = 100(1+0.0325)*to the power of*2n

5 = 1.0325*to the power of*2n

*I am sure the answer is right to this point, i'm just not sure of how to solve for the exponent 2n. thank you for any help!

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# FINANCIAL MATH: Question on Compounding Interest Semi-annually

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