If you invest money for 10 years at 8% interest,compounded semi-annually,you are really investing money for 20 six-month periods,during which you receive 4% interest each period.

Question

Quizplus · Accepted Answer

When interest is compounded semi-annually, it means that the interest rate is applied twice a year. This results in 20 compounding periods over 10 years, as each year has two six-month periods. Therefore, each compounding period receives 4% interest, resulting in a total of 8% per year.

If You Invest Money for 10 Years at 8% Interest,compounded