Please Help Me With This Finance Exercise

[mufarrid]

If P20,000 will accumulate to P45,758.55 in 4 years, what is the interest rate compounded semi-annually?

[bobbinwales]

Very roughly 12% every 6 months but use a spreadsheet to try different amounts or just use 'goal seek' function. Like if your trying 12% do 20000 x (1.12)^8.
Or use an online calculator if you don't need to show how you work'd it out.
Sorry if have missunderstood what semi annual means

[bobbinwales]

Ps...Can you invest some for me?

[bobbinwales]

Best I done is 10.9 % per half year compound paid & compound'd every 6 months... but my spreadsheet total is a £1 out from yours so maybe its not the right answer or method.... sorry

[Gizmonster]

The exact amount is 10.899967726 % so you're close enough bobbin :)

My working:
20000 x I^8 = 45758.55
I^8 = 45758.55 / 20000
Taking the 8th root of this, gives I = 1.1089967726

to work out %:
(1.1089967726 - 1) x 100
Interest rate compounded every 6 months for 4 years = 10.89967726 %

[bobbinwales]

cheers.... thats about 10.8996772% better rate than I get