1.

If a bank compounds interest semiannually for 3 years how many total compounding periods will be there? ​

Answer»

ong>ANSWER:

it will be 6

Step-by-step explanation:

the bank compounds semiannually which means that the time period will become 2n where n is the time given in years( according to the formula A=P(1+r/100)^{2n}, if the rate is for half YEAR otherwise it will be r/200)

so, according to the formula above, we get n as 3 and the time will be 2*n=2*3=6

So the compounding PERIODS will be 6



Discussion

No Comment Found

Related InterviewSolutions