Question

What 3 things must be done if payments are semi-annual rather than annual?

Answer 1

3 things to be done if payments are semiannual rather than annual

1. The interest used for calculation for semiannual payments should be half of APR of  annual payments.
2. The number of periods needed for calculation should be double for semi annual compounding than for annual compounding.
3. The number of compounding done for semi annual compounding is twice for semi annual payment.

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