Answer:
the rate compounded semi-annually is compounded twice in a year. thus, this rate is higher than the rate compounded annually which is compounded once in a year
Step-by-step explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
For example, there are two banks
Bank A offers 10% rate with semi-annual compounding
Bank B offers 10% rate with annual compounding.
If you deposit $100, the amount you would have after 2 years in each bank is
A = 100x (1 + 0.1/2)^4 = 121.55
B = 100 x (1 + 0.1)^2 = 121
The interest in bank a is 0.55 higher than that in bank B
1)
here, we do the left-hand-side
2)
here we also do the left-hand-side
3)
here, we do the right-hand-side
Hope this helps!! If u want me to answer any more questions just ask! Have a nice day!
Answer:
do u even still need the answer its been aweek since you asked it and it was due that same day
Step-by-step explanation:
Answer:
7 9/10
Step-by-step explanation:
cuz mah brain big