A sum of $\$ 1000$ was invested for 4 years, and the interest was compounded semiannually. If this sum amounted to $\$ 1435.77$ in the given time, what was the interest rate?
Added by Christopher H.
Step 1
Since the interest is compounded semiannually, there are 2 compounding periods per year. Therefore, over 4 years, there are a total of $4 \times 2 = 8$ compounding periods. Show more…
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\begin{equation} \begin{array}{l}{\text { Interest Rate A sum of } \$ 1000 \text { was invested for } 4 \text { years, }} \\ {\text { and the interest was compounded semiannually. If this sum }} \\ {\text { amounted to } \$ 1435.77 \text { in the given time, what was the inter- }} \\ {\text { est rate? }}\end{array} \end{equation}
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