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Find the period and rate for each

1. A sum taken for 1 and 1/2 years at a rate of 8% per annum

2. A sum taken for 2 years at 4% per annum compounded semiannually

Answers (1)

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Period	Rate
1. Period= 1 and 1/2 = 1.5 years	8% per annum (Since it's not compounded, the rate remains the same)
2. Compounded semiannually means interest is applied twice a year means for 2 years = $$ 2 \times 2= 4 years $$	Annual rate = 4%, but as it's compounded semiannually, divide by 2 for per half-year $$ \frac{4 \%}{2}= 2 \% $$

Posted by

Saniya Khatri

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