Ron invested $700 for 9 years at 3.4% compounded semi-annually. How many compounding periods are there over the term of the investment?

financial equations use the formula

where

A is accrued amount

P = principal

r= interest rate

t = number of periods (NOTE: NOT NUMBER OF YEARS !!!)

r = interest rate (NOTE: APR the whole years interest NOT the period)

So in your question the compounding is being done "Semi-annually:

NOTE:

Annual = 1

semi-annual = 2

Quarterly = 4

monthly = 12

So your number of periods is ..... number of years (9) times the number of periods in a year (2 - for semi-annual)

9 * 2 = 18 there are 18 periods

Step-by-step explanation:

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.