Asked by Jimmy Trinh on May 16, 2024
Verified
To the nearest month, how long will it take an investment to double in value if it earns 7.5% compounded semiannually?
Compounded Semiannually
The process of calculating interest where the accrued interest is added to the principal sum twice a year, resulting in interest being earned on previously earned interest.
Double Value
A term indicating that an item’s or asset's value has increased to twice its original value.
- Determine the duration necessary for investments to expand to a specific value given varying compounding intervals.
Verified Answer
SR
Learning Objectives
- Determine the duration necessary for investments to expand to a specific value given varying compounding intervals.