The number of time periods for compounded every 6 months, for 2(1/2) years is …………………
The number of time periods for compounded every 6 months, for \(2\frac{1}{2}\) years is …………………
A) 7
B) 6
C) 5
D) 10
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Correct option is (C) 5
Number of time periods \(=\frac{2\frac{1}{2}\,years}{6\,months}\)
\(=\cfrac{\frac{5}{2}\,years}{\frac{1}{2}\,year}\) \((\because\) 6 months = \(\frac12\) year)
\(=\frac52\times\frac21=5\)
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