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anyanavicka [17]
3 years ago
15

When a principal amount, P, is invested at an annual interest rate, r, and compounded n times per

Mathematics
1 answer:
GaryK [48]3 years ago
8 0

Answer:

n =2

Step-by-step explanation:

Compound interest:

The compound interest formula is given by:

A(t) = P(1 + \frac{r}{n})^{nt}

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

In this question:

The money is compounded every 6 months.

n is the number of times that interest is compounded per year.

Each 6 months means 12/6 = twice a year. So n =2..

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