A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is 86123, then what is the rate (in %) compounded semi-annually? Round your answer to 2 decimal places.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to pay a fixed rate over the entire
term. If the amount of the fund at the end of the term is #86123, then what is the rate (in %) compounded semi-annually?
Round your answer to 2 decimal places.
Transcribed Image Text:A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is #86123, then what is the rate (in %) compounded semi-annually? Round your answer to 2 decimal places.
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