When interest is compounded half yearly, the time period doubles and t…

Question

When interest is compounded half yearly, the time period doubles and the rate is:

Accepted 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: syllabus Mathematics, Chapter 8, Comparing Quantities._

Answer

Doubled

Answer

Unchanged

Answer

Squared

When interest is compounded half yearly, the time period doubles and the rate is:

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