Question

How many times will interest be added to the principal in one year if the interest is compounded semiannually?

1

2

6

12

Answer 1

"Annual" means "year" while "semiannual" means "half a year". If the interest is compounded semiannually, then the interest is compounded twice a year (every half year or every 6 months).

So the final answer is choice B) 2