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Greg deposited $4000 into an account with a 9.8% annual interest rate, compounded semiannually. Assuming that no withdrawals are made, how long will it
take for the investment to grow to $4616?
Do not round any intermediate computations, and round your answer to the nearest hundredth.

Respuesta :

The number of years it would take $4000 to grow to $4616 is 2.92 years.

How many years would it take the investment to have a value of $4616?

When an amount earns compound interest compounded semi annually, it means that both the amount invested and the interest accrued increases in value twice yearly.

Number of years = (In FV / PV) / r

  • r = 9.8/2 = 4.90%
  • FV = future value = 4616
  • PV = present value = 4000

(In 4616 / 4000) / 0.049 = 2.92 years

To learn more about compound interest, please check: https://brainly.com/question/24260765

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