Question: 1 Marks: 10

At what nominal compound interest rate compounded semi-annually will a sum of money be doubled in 21 months?

If there are two payments a year, at the beginning of the year and at 6 months, plus one payment at the end of 21 months then at an annualized compound rate of 22.15% your money will double in 21 months.
According to rule 72
72/interest= years
27/3.25=22.15% approx

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Spring_2010_MTH001_2 solution.doc