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

Question

asked Apr 3, 2022 188k views

1 Answer

Imran Sefat · Answer 1 · 2022-04-08T05:37:14+0000

Answer:

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: