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OpenStudy (anonymous):
what does it mean that interest is to be compounded semi-annually ?
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OpenStudy (kira_yamato):
compounded = Calculated and added to principal value semi-annually = in 1 year, there will be 2 calculations of the interest
OpenStudy (anonymous):
it means that interest is calculated on 6-month basis hence interest is added to the Prinicipal after every 6 months and so Principal increases after every 6 months
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