Question

If a bank compounds interest semiannually for 3 years how many total compounding periods will be there? ​

Answer 1

Answer:

it will be 6

Step-by-step explanation:

the bank compounds semiannually which means that the time period will become 2n where n is the time given in years( according to the formula $A=P(1+r/100)^{2n}$, if the rate is for half year otherwise it will be r/200)

so, according to the formula above, we get n as 3 and the time will be 2*n=2*3=6

So the compounding periods will be 6