Question

question 3 of 10
how many times will interest be added to the principal in one year if the interest is compounded semiannually?

a. 1

b. 2

c. 12

d. 6

Explanation:

"Semiannually" means occurring twice per year. When interest is compounded semiannually, interest is calculated and added to the principal two times within a 12-month period.

Answer:

B. 2