Question

find the number of conversion and the rate for each conversion period for each of the following..

1. A sum taken for 1½ years at 10% per annum compounded half yearly

Answer 1

The time period after which the interest is added each time to form a new principal is called the conversion period.If the interest is compounded half yearly, the time period becomes twice and rate becomes half of the annual rate.If the interest compounded quarterly, the time period becomes 4 times and rate become one-fourth of the annual rate.If the conversion period is not specified, then it is taken as one year and the interest is compounded annually.

Question: Find the time period