Question

question 5 (10 points)
match the compounding periods with the value of n.
$n=2$

1. compounded annually

$n=4$

1. compounded semi-annually

$n=12$

1. compounded quarterly

$n=365$

1. compounded monthly

$n=1$

1. compounded daily

Explanation:

Match each compounding frequency to the number of times interest is compounded per year (n):

1. Annual compounding happens 1 time per year.
2. Semi-annual compounding happens 2 times per year.
3. Quarterly compounding happens 4 times per year.
4. Monthly compounding happens 12 times per year.
5. Daily compounding happens 365 times per year.

Answer:

• $n=2$: 2. Compounded semi-annually
• $n=4$: 3. Compounded quarterly
• $n=12$: 4. Compounded monthly
• $n=365$: 5. Compounded daily
• $n=1$: 1. Compounded annually