Question

What is the period interest rate on mortgage with a 4.8% APR Compounded semiannual?

Answer 1

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)