I'm brushing up my PS skills for GMAT had a simple question around calculating the value of n (number of times compounded) in COmpound Interest Problems.
A = P[1 + (r/n)]^nt
where
P = Principal
r = rate
n = compounded
t = number of years
In the case where, say time is 14 years and the question asks compounded semi-annually :
n = 2
However, if the question asks (hypothetically) the number of years is 6 months and compounded semi-anually,
is n = 2 or n = 1 (since technically semi-annual compounding can happen only once?)
A = P[1 + (r/n)]^nt
where
P = Principal
r = rate
n = compounded
t = number of years
In the case where, say time is 14 years and the question asks compounded semi-annually :
n = 2
However, if the question asks (hypothetically) the number of years is 6 months and compounded semi-anually,
is n = 2 or n = 1 (since technically semi-annual compounding can happen only once?)
