Asked by Vanessa Rodriguez on May 13, 2024
Verified
A $9,000 payment on March 1 was not paid. Instead $9,140.65 was paid earning 6.3% interest compounded semi-annually. The payment was made on July 1.
Compounded Semi-Annually
The process of calculating interest on both the initial principal and the accumulated interest over half-year periods.
- Acquire knowledge on the concept and execution of calculations for compound interest.
Verified Answer
BS
Brandon StaplesMay 15, 2024
Final Answer :
False
Explanation :
The interest calculation for a period less than a year, especially when compounded semi-annually, does not match the scenario described. The interest for a few months would not result in such a precise and relatively high increase from $9,000 to $9,140.65, given the described interest rate and compounding frequency.
Learning Objectives
- Acquire knowledge on the concept and execution of calculations for compound interest.