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The annual interest rate of Daphne's savings account is 2.4% and simple interest is calculated semiannually. What is the periodic interest rate of Daphne's account?
A. 0.4%
B. 0.2%
C. 0.6%
D. 1.2%

Respuesta :

The interest rate is calculated semiannually which means twice a year so you do 2.4/2 which equals 1.2 so the answer is D
nuhulawal20

Given the annual interest rate and simple interest calculated semiannually,

the periodic interest rate of Daphne's account is 1.2%.

Option D)1.2% is the correct answer.

What is the periodic interest rate of Daphne's account?

periodic interest rate is the rate per compounding period.

PIR = Annual rate / Compounding

Given that;

  • Annual interest rate R = 2.4%
  • Compounding = semiannually = 2
  • Periodic interest rate = ?

Periodic interest rate = Annual rate / Compounding

Periodic interest rate = 2.4% / 2

Periodic interest rate = 1.2%

Given the annual interest rate and simple interest calculated semiannually,

the periodic interest rate of Daphne's account is 1.2%.

Option D)1.2% is the correct answer.

Learn more about periodic interest rate here: https://brainly.com/question/13735414

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