Question

If interest is compounded semi-annually, which expression represents the account balance in t yeats?

Answer 1

ANNUAL Compounding : Total = Principal * (1 + rate)^years

Semi-Annual TOTAL = Principal * (1 +rate/n)^n*years

where "n" is the number of compounding periods per year

So the formula for semi-annual compounding is

TOTAL = Principal * (1 +rate/t)^t*years

Explanation: