Asked by kyaira jackson on Apr 26, 2024
Verified
A $10,000 investment grew to $12,000 after 39 months of semiannual compounding. What effective rate of return did the investment earn?
Semiannual Compounding
Refers to the process of applying interest to a principal amount twice a year, resulting in interest being calculated on previously earned interest as well as the principal.
- Master the calculation and comprehension of effective interest rates for assorted compounding periods.
Verified Answer
AN
Learning Objectives
- Master the calculation and comprehension of effective interest rates for assorted compounding periods.