An investment will take 37 semi-annual periods to mature:

How many years is this?

2. Calculate the annual effective rate equivalent to a nominal rate of 8.96% compounded quarterly.

3. Mr. and Mrs. Babyboomer purchased their house 30 years ago for $174,400. Today, the house is valued at $590,500.

Calculate the compound annual rate of growth (j₁) in the value of their home during the 30-year period. 

 

4. Sebastian's grandparents set aside $6,000 for him in a trust fund 21 years ago. Over this time, the money has grown to $15,300.

What compound annual rate of return (j₁) did the trust fund earn?