Answer:
The expected growth is 17.2%
Step-by-step explanation:
Let us have a present initial value of 500
we then proceed to get the value after 4 years
We use the compound interest formula to get the amount
That will be;
A = P( 1 + r/n)^nt
P = 500
r = 4% = 4/100 = 0.04
n is 2: semi annually means twice per year
t is 4
So
using the formula, we have that;
P = 500(1 + 0.04/2)^(2 * 4)
= 500(1.02)^8
= 586 approximately
So the percentage growth rate is as follows
(586-500)/500 * 100
= 86/500 * 100 = 17.2%
