If interest or compounding is done on other than an annual basis, adjust by

Exam Question

If interest or compounding is done on other than an annual basis, adjust by

• 1) dividing the number of years by the number of compounding periods
• 2) multiplying the number of years by the number of compounding periods
• 3) dividing the interest rate by the number of compounding period
• 4) multiplying the years and dividing the interest rate by the number of compounding periods

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