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Earn +20 ptsQ: What is compound interest semiannually?
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What would be the amount of compound interest on 8000 invested for two years at 12 percent compounded semiannually?
Semiannually over two years is equivalent to 4 periods. If the interest is 12% every 6 months, then the amount of interest is It is 8000*[(1.12)4 -1] =4588.15
Find the effective rate when the stated rate is 13.5 percent and the interest is compounded semiannually?
13.96%
What is the effective rate of 13.5 percent when the interest is compounded semiannually?
It is 1.135^2 - 1 = 28.8%
What is the calculation for a simple compound interest rate?
There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.
WHAT does the carrot in the formula for compound interest means?
There is no carrot in the compound interest formula!
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