Question #267633
A bank promises to quadruple your investment over a period of 15 years based on semi-annual compounding. What is the stated annual interest rate on this investment?
Expert's answer
The given problem can be solved using RATE function in excel.
RATE function computes interest rate for given period (NPER), Periodic savings/ withdrawal (PMT), Amount accumulated in future (FV) and Present value of money (PV).
Let us assume $1 is invested.
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