1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
arlik [135]
3 years ago
5

What is the difference between a rate that is compounded annually and a rate that is compounded semiannually

Mathematics
1 answer:
8090 [49]3 years ago
3 0

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

You might be interested in
I will give a brainliest to who ever answers this question first!
SVEN [57.7K]
0.0000000952 in scientific notation
9.52 × 10-8
5 0
3 years ago
Read 2 more answers
Simplify: (2^2 + 3^4)−^2
Lisa [10]

\bf ~\hspace{7em}\textit{negative exponents} \\\\ a^{-n} \implies \cfrac{1}{a^n} ~\hspace{4.5em} a^n\implies \cfrac{1}{a^{-n}} ~\hspace{4.5em} \cfrac{a^n}{a^m}\implies a^na^{-m}\implies a^{n-m} \\\\[-0.35em] \rule{34em}{0.25pt}\\\\ (2^2+3^4)^{-2}\implies (4+81)^{-2}\implies 85^{-2}\implies \cfrac{1}{85^2}\implies \cfrac{1}{7225}

5 0
3 years ago
Read 2 more answers
What 1/4(3.14)(5.4^3)(12)<br><br>and any player boys out there<br>plzzzzzz im bored
Soloha48 [4]

Answer is 1483.31088

Explanation:

It is asked that =(\frac{1}{4})(3.14)(5.4^{3} )(12)\\=(3.14)(5.4^{2} )(3)\\\\=(3.14)(157.464)(3)\\=1483.31088\\

Answer is 1483.31088

6 0
3 years ago
Read 2 more answers
A popular brand of running
s2008m [1.1K]

$119 - $68 = $51

51/68 x 100 = .75

.75 x 100 = 75%

So, there was a 75% percent increase in the price.

7 0
3 years ago
Read 2 more answers
What does coincides mean in geometry
Marianna [84]

Answer:

Two lines or shapes that lie exactly on top of each other. Example: these two lines are coincident, only you can't see them both, because they are on top of each other.

Step-by-step explanation:

7 0
3 years ago
Other questions:
  • What weight is equivalent to 40 ounces
    9·1 answer
  • If 2.4 hours is a tenth of 24 hours<br> How much is that in total minutes?
    7·2 answers
  • PLZZZZZZ HELP 10 POINTS!!!!!
    11·2 answers
  • Can someone help me plz?
    14·1 answer
  • Molecules of a toxic chemical eventually decompose into inert substances. Suppose the decomposition time is exponentially distri
    10·1 answer
  • PLEASE I NEED HELP WITH THIS!!!!​
    6·1 answer
  • 144 seventh graders would check out fancy books
    12·2 answers
  • Help me with this pls
    5·2 answers
  • 6 to the power of 2+ 15
    12·2 answers
  • I need help this is really hard i still dont understand plss help
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!