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]
2 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]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
Jake has decided to give a bonus to the employee who has worked the greatest total number of hours over the past six months. Fou
shusha [124]

Answer:

i think :

a. Vince

Step-by-step explanation:

8 0
3 years ago
PLS HELP PLS HELP! What is the average speed Ben traveled in leg C of his journey?
mixer [17]

Answer:

the answer is 35

Step-by-step explanation:

35 because c was next to the 35

4 0
3 years ago
Read 2 more answers
Complete the Steps to Solve for x.<br><br> -0.57x+0.27x =8.1
IgorLugansk [536]

Answer:

x=-27

Step-by-step explanation:

-0.57x+0.27x = 8.1

-0.3x = 8.1

x = -8.1/0.3

x = -27

6 0
3 years ago
Read 2 more answers
What is 9/12 simplified? Thanks
Pani-rosa [81]
\frac{9:3}{12:3} =  \frac{3}{4}
6 0
3 years ago
Read 2 more answers
Find the greatest common factor of the following monomials pq^2 and pq^5
diamong [38]

find the prime factors of each term in order to find the GCF

answer is pq^2

4 0
3 years ago
Other questions:
  • 2.
    8·1 answer
  • A tank contains 200 gallons of water in which 300 grams of salt is dissolved. A brine solution containing 0.4 kilograms of salt
    9·1 answer
  • Un dreptunghi are perimetrul 420m. Lungimea este de 4ori mai mare decât latimea. Aflati lungimea si latimea dreptunghiului?
    5·1 answer
  • Margie takes a random sample of 30 students in her seventh-grade class and finds that 75% of the sample prefers the color blue o
    5·2 answers
  • On a birthday cake, 1/3 of the icing was orange and another 1/3 was white. What fraction of the birthday cake was either orange
    12·2 answers
  • Fill in the missing numbers
    9·1 answer
  • What is the 8th term of the sequence? −16, 24, −36, 54, ... −729/8 2187/8 −2187/8 729/8
    5·1 answer
  • If anyone can help me figure out these answers that would be great! Thank youu (pls show work!)
    11·1 answer
  • What function is represented by the graph? Of(x)=-2|x|+1 Of(x)=-1/2|x|+1 Of(x)=-2|x+1| Of(x)=-1/2|x+1|
    9·1 answer
  • Polygon ABCDE is reflected to produce polygon. A B C D E. what is the equation for the line of reflection
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!