Question

After two years an investment of $800 that is compounded semiannually is worth $920. What is the APY?

Answer 1

@mathmale @satellite73 @zepdrix

Answer 2

you know the formula for this?

Answer 3

^^

Answer 4

Yea.
A= Ao(1+r/n)^(n)t

Answer 5

?

Answer 6

@Jamierox4ev3r

Answer 7

@satellite73

Answer 8

After two years an investment of $800 that is compounded semiannually is worth $920. What is the APY?

Initial amount: $800
Final amount: $920
interest rate: unknown
number of compounding periods per year: 2
number or years: 2

Insert the knowns into this equation: A= Ao(1+r/n)^(n)t and solve for r.

Answer 9

I got .0711161527 for r.
What do I do next?

Answer 10

\[920=800\left( 1+\frac{ r }{ 2 \times 100 } \right)^{2 \times 2}\]
\[\frac{ 920 }{ 800 }=\left( 1+\frac{ r }{ 200 } \right)^4\]
\[1+\frac{ r }{ 200 }=\left( \frac{ 23 }{ 20 } \right)^{\frac{ 1 }{ 4 }}=\left( 1.15 \right)^{\frac{ 1 }{ 4 }}\]
r=?