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When interest is compounded half yearly, the time period doubles and the rate is:
ADoubled
BUnchanged
CSquared
DHalved
Answer & Solution
Correct answer: D. Halved
1. There are two conversion periods a year.
2. Each uses half the annual rate.
3. Quarterly compounding uses a quarter of the rate.
_Source: NCERT Class 8 Mathematics, Chapter 8, Comparing Quantities._
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