An investment is advertised as returning 3.7% every 6 months (semiannually), compounded semiannually. if $50,000 is invested, the growth can be modeled by the equation a(t) = 50,000(1.037)2t.
what is the equivalent annual growth rate for this investment (rounded to the nearest hundredth of a percent) and what is it worth (rounded to the nearest thousand dollar) after 25 years?
8.50% and $308,0007.54% and $308,0007.44% and $298,00022.22% and $96,000

7.54% and $308,000

Explanation:

Part 1 : Since, the amount formula in compound interest,

Where,

P = principal value,

r = annual rate,

n = number of compounding periods in a year,

t = number of years,

If P = $ 50,000, n = 1,

Suppose this amount is equivalent if and n = 2,

Then

Hence, the equivalent annual growth rate for this investment would be 7.54%.

Part 2 :

If t = 25,

( Using calculator )

i.e. it would be worth $ 308,000( approx) after 25 years.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3