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5 February, 13:08

Give formulae for half yearly calculation of compound intrest formula.

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  1. 5 February, 14:20
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    The formula for compound interest, compounded once per year, is:

    A = P (1+r) ^t, where r is the annual interest rate as a decimal fraction and t is the number of years.

    If interest is compounded twice per year, then the above formula is changed to:

    A = P (1+r/2) ^ (2t), where the '2' indicates twice-per-year compounding.

    If interest is compounded n times per year, then the above formula is changed to:

    A = P (1+r/n) ^ (nt).
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