For half yearly compounding, the rate used in each period is:

Question

Accepted Answer

A. Half the annual rate

1. Two periods make up the year.
2. The annual rate is shared between them.
3. Each period uses half the annual rate.
_Source: syllabus Mathematics, Chapter 8, Comparing Quantities._

Answer

Twice the annual rate

Answer

Same as annual rate

Answer

Third of annual rate

For half yearly compounding, the rate used in each period is:

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