Answer:
the rate compounded semi-annually is compounded twice in a year. thus, this rate is higher than the rate compounded annually which is compounded once in a year
Step-by-step explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
For example, there are two banks
Bank A offers 10% rate with semi-annual compounding
Bank B offers 10% rate with annual compounding.
If you deposit $100, the amount you would have after 2 years in each bank is
A = 100x (1 + 0.1/2)^4 = 121.55
B = 100 x (1 + 0.1)^2 = 121
The interest in bank a is 0.55 higher than that in bank B
If 5 consecutive integers is 205,
then a + b + c + d + e = 205
but also, each integer is separated by a difference of 1
⇒ a + (a + 1) + (a + 2) + (a + 3) + (a + 4) = 205
⇒ 5a + 10 = 205
⇒ 5a = 195
⇒ a = 39
∴ third term = 39 + 2
= 41
4,497,000,000 = <span>4.497 x 10^9</span>