Given:
The accumulated value of investment is A = 13,407.58.
The invested amount is P = 12,000.00.
The time period is 4 years and 6 months.
Explanation:
The formula for the accumulated value at r rate of interest is compounded semi-annually.
[tex]A=P(1+\frac{r}{200})^{2\cdot t}[/tex]Substitute the values in the formula to determine the value of r.
[tex]\begin{gathered} 13407.58=12000(1+\frac{r}{200})^{2\cdot4.5} \\ \frac{13407.58}{12000}=(1+\frac{r}{200})^9 \\ 1+\frac{r}{200}=(\frac{13407.58}{12000})^{\frac{1}{9}} \\ \frac{r}{200}=1.01239-1 \\ r=0.01239\cdot200 \\ =2.478 \\ \approx2.48 \end{gathered}[/tex]So the rate of interest is 2.48%.
