190k views
5 votes
What is the period interest rate on mortgage with a 4.8% APR Compounded semiannual?

1 Answer

6 votes

Answer:

2.4%

Explanation:

If the APR is x% and it is compounded for n times in a year, then the period interest rate is
(x)/(n)%.

Now, given that the interest rate on a mortgage is 4.8% APR compounded semiannually.

So, here x = 4.8% and n = 2 and hence, the period interest rate on the mortgage is
(4.8)/(2) = 2.4%. (Answer)

User Bodagetta
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories