Q372
Future value of interest if it is calculated two times a year can be a classified as
A.
semi-annual discounting
B.
annual discounting
C.
annual compounding
D.
semi-annual compounding
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Future value of interest if it is calculated two times a year can be a classified as semi-annual compounding. A semiannual event happens twice a year, typically every six months.