Hello. In a maturity value interest question I am not quite sure what formula to use to get time, and also what measurement I should be using for the time (days, months, etc)
The question is:
Calculate the time period of an investment in a mutual fund that matured to $250,000 yielding an interest of $75,000 at 6% compounded semi-annually? Please round your answer up to the nearest month.
What I have done so far:
S = P + I so P=S-I P = 250,000-75,000 = 175,000
Now that I have S, P, and I, time is required.
I tried using t=i/pr which gets me 75,000 / [250,000*0.06] which = 5
Is that 5 years? Another thing is that equation didnt account for the semi annual compounding :s