Question

In calculating the compound interest, if the interest is compounded half yearly, how many half years will be taken in the time period of 2 years

Answer 1

Answer:

Compound Interest when Interest is Compounded Half-Yearly

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).