Question

3. If interest is compounded half yearly, then is taken half and time
becomes

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Answer 1

Answer:

If the rate of interest is annual and the interest is compounded half-yearly (i.e., 6 months or, 2 times in a year) then the number of years (n) is doubled (i.e., made 2n) and the rate of annual interest (r) is halved (i.e., made r2).