Answered

Jade invested $13,500 at 5.2% interest, compounded semiannually, and she wants to know how much her investment will be worth in 8 years

part 1: what is the periodic interest rate of jade investmentpart 2: how many compounding periods does jades investment offer in a year? how about in 8 years?

Verified Answer :

5.2% interest, compounded semiannually means 
2.6% each 6 months because semi-annual is twice per year. 
1 @ time zero = 1.026 at 6 months and (1.026)² in a year = 1.052676 or 5.2676% APR 
8 years is 16 periods (1.026)^16 
13500 time zero
13851 6m 1period 1/2 year
14211.13 12m 2periods 1 year 
14580.62 18m 3periods
14959.71 24m 4p 2y 
15348.66 30m 5p
15747.73 36m 6p 3y 
16157.17 42m 7p
16577.26 48m 8p 4y 
17008.27 54m 9p
17450.48 60m 10p 5y 
17904.19 66m 11p
18369.70 72m 12p 6y 
18847.31 78m 13p
19337.34 84m 14p 7y 
19840.11 90m 15p
$20355.96 96m 16p 8yrs = $13,500 * (1.026)^16 

From this set of information, you should be able to answer the three parts. 
There are math formulas available in books about it. 

Using the APR, you can get the same answer 
(1.052676)^8

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