Question

If the interest is compounded semi annually then semi annually rate is ___ of annually rate

Answer 1

The answer of it is half .

Answer 2

If the interest is compounded semi-annually, then the semi-annual rate is half of the annual rate.

• The interest calculated on any given amount semi-annually means that the interest will be calculated after every 6 months.
• This can be obtained by dividing the annual rate by 2 to obtain the semi-annual rate.
• In such cases, the time duration is doubled while reducing the interest rate.
• The further calculation is done by using the same formula of compound interest.