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When interest is compounded half-yearly at R% per annum for n years, the rate and time used in the formula are:

Class 8Compound InterestComparing Quantities

Arate $\frac{R}{2}$ for $2 n$ periods
Brate R for n periods
Crate $2 R$ for $\frac{n}{2}$ periods
Drate $\frac{R}{2}$ for n periods

Step-by-Step Solution

Half-yearly: each period gets half the annual rate

(\frac{R}{2})

and there are

2 n

half-year periods.

Answer: A) rate

\frac{R}{2}

for

2 n

periods

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