- #1
HerroFish
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Homework Statement
How long does it take for a sum of money to double if it is invested at 8% compounded semi-annually?
Homework Equations
A = P(1+i)n
A: Compounded amount
P: Initial amount
i: Interest rate
n: Period
The Attempt at a Solution
A = P(1+i)n
(2x) = (x)[1+(0.08)]2n (2n because it's compounded semi annually)
2 = 1.082n (x cancels out)
2n = log1.082
n = (log1.082)/2
n = 4.5032 per half a year
Although the answer given at the back of the package is 8.836a.
And I'm assuming "a" stands for annual. So I'm not sure where I went wrong.
Any help is much appreciated! Thanks in advance!