answersLogoWhite

0

It is compounded twice a year. The formula is A=P(1+rt) P is how much is put in, r is the percentage as a decimal, t is how many times it is compounded a year so in this case it would be 2.

So if deposited $1000 in a bank at 8% that is compounded semi annually, the formula would look like this. A=$1000(1+.08(2))

User Avatar

Wiki User

14y ago

Still curious? Ask our experts.

Chat with our AI personalities

JudyJudy
Simplicity is my specialty.
Chat with Judy
LaoLao
The path is yours to walk; I am only here to hold up a mirror.
Chat with Lao
EzraEzra
Faith is not about having all the answers, but learning to ask the right questions.
Chat with Ezra

Add your answer:

Earn +20 pts
Q: What does it mean when they say interest compounded semi annually?
Write your answer...
Submit
Still have questions?
magnify glass
imp