Compound Interest
Joshua invests $2000 at an annual interest rate of 6.05%, compounded semi-annually. He needs to make his investment grow to $2400 determine the time this will take. Please explain and show work thanks!

Question

Compound Interest
Joshua invests $2000 at an annual interest rate of 6.05%, compounded semi-annually. He needs to make his investment grow to $2400 determine the time this will take. Please explain and show work thanks!

anonymous · Answer

you will use the compound interest formula, semi annual is twice a year

anonymous · Answer

you're given the amount of the investment plus interest, so all you do is solve for t, which is years

anonymous · Answer

$$2400=2000(1+\frac{ r }{ c })^{tc}$$

anonymous · Answer

r=annual rate (0.0605)
c=times compounded per year (2)
t=time in years (solve for t)