The number of time periods for compounded every 6 months, for \(2\frac

1.	The number of time periods for compounded every 6 months, for \(2\frac{1}{2}\) years is ………………… A) 7 B) 6C) 5 D) 10
Answer» Correct option is C) 5 Correct option is (C) 5 Number of time periods \(=\frac{2\frac{1}{2}\,years}{6\,months}\) \(=\cfrac{\frac{5}{2}\,years}{\frac{1}{2}\,year}\) \((\because\) 6 months = \(\frac12\) year) \(=\frac52\times\frac21=5\)

The number of time periods for compounded every 6 months, for \(2\frac{1}{2}\) years is ………………… A) 7 B) 6C) 5 D) 10

Answer»

Correct option is C) 5

Correct option is (C) 5

Number of time periods \(=\frac{2\frac{1}{2}\,years}{6\,months}\)

\(=\cfrac{\frac{5}{2}\,years}{\frac{1}{2}\,year}\) \((\because\) 6 months = \(\frac12\) year)

\(=\frac52\times\frac21=5\)