All categories

2 years ago

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

Mathematics

1 answer:

8090 [49]2 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

4. What is the system of equations that describes the following graph?

GarryVolchara [31]

Answer:

The system of inequalities is

$y$

$y>0.25x$

Step-by-step explanation:

step 1

Find the equation of the dashed line with negative slope

The line passes through the points

(0,-2) and (-2,0)

Find the slope

$m=(0+2)/(-2-0)=-1$

Find the equation of the line in slope intercept form

$y=mx+b$

we have

$m=-1\\b=-2$

substitute

$y=-x-2$

The solution of the inequality is the shaded area below the dashed line

therefore

The equation of the inequality A is

$y$

step 2

Find the equation of the dashed line with positive slope

The line passes through the points

(0,0) and (4,1)

Find the slope

$m=(1-0)/(4-0)=0.25$

Find the equation of the line (direct variation)

$y=kx$

we have

$k=0.25$

substitute

$y=0.25x$

The solution of the inequality is the shaded area above the dashed line

therefore

The equation of the inequality B is

$y>0.25x$

therefore

The system of inequalities is

$y$

$y>0.25x$

4 0

2 years ago

What is the critical path and minimum prep time in order to host a party?

Hoochie [10]

Answer:

all i know is that number #2 is A

adding it all up is hard to figure out but #2 will show you that lay out so it mite be easier but i need help on this as well

Step-by-step explanation:

6 0

3 years ago

Jack's baby sister crawled three and five tenths meters today.which number represents that distance?

BaLLatris [955]

5 is the answer because it is a full number

8 0

3 years ago

Plssss help (ALGEBRA 1 ) will mark brainlest

Dimas [21]

Answer:

I'm confused by the layout of the first two, but I can help you with the last one!

The last one is C!

Step-by-step explanation:

7 0

3 years ago

Read 2 more answers

Samuel deposits $1,800 in an account that earns 12% simple annual interest. How many months will it take for Samuel's account ba

Artemon [7]

In order to use the simple interest formula, we first define the variables. The interest would be equal to Samuel's desired amount $ 2,488 minus the principal amount of $ 1,800 which is then equal to $ 688. The rate must be in decimal form which is equal to 0.12 while t is expressed in years. Substituting the values, t is equal to 3. Thus, it will take 36 <span>months for Samuel's account balance to reach $2,448. </span>

6 0

2 years ago