If you deposit $1,004 in your bank, when you take it out two years later, it...

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If you deposit $1,004 in your bank, when you take it out two years later, it grows to $1,177. With semiannual compounding, the (annual) interest rate is _%? (keep two decimal places, for example, enter 1.23 for 0.0123) Hint: Find the semiannual rate and multiply it by 2. Remember N = 4. If you deposit $1,004 in your bank, when you take it out two years later, it grows to $1,177. With semiannual compounding, the (annual) interest rate is _%? (keep two decimal places, for example, enter 1.23 for 0.0123) Hint: Find the semiannual rate and multiply it by 2. Remember N = 4.

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We can use the formula for compound interest with semiannu... View the full answer