Question

Match the correct equation for the variable n with * for number of times compound interest is figured. quarterly d.___ semi-annually a.___ monthly b.___ annually c.____

I have to put the correct answer on the lines and they gave me a. N =2 b. N= 12
C. N=1 and D. N=4

Answer 1

quarterly N = 4

semi-annually N = 2

Monthly N = 12

annually N = 1

Explanation:

Given the following compound interest times :

N = number of times interest is compounded per period :

A period is regarded as a whole year.

Interest compounded;

QUARTERLY = Every 4 months per period = 12/3= 4

SEMI ANNUALLY = Every 6 months per period = 12/6 = 2

MONTHLY = Every month = 12 / 1 = 12

ANNUALLY = Every 12 months = 12 /12 = 1