1.

The number of conversion periods, if the interest on a principal is compounded every two months is ……………(a) 2(b) 4(c) 6(d) 12

Answer»

(c) 6

Conversion period is the time period after which the interest is added to the principal. If principal is compounded every two months then in a year, there will be 6 12/2 conversation periods.



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