Asked by bill

If an account is increasing at a rate of 3.3% compounded semiannually, what is the exact value of i in the following present value ordinary annuity formula?
F V = P (StartFraction (1 + t) superscript n Baseline minus 1 over i EndFraction)
a.
3.3
b.
StartFraction 0.033 over 100 EndFraction
c.
StartFraction 0.033 over 2 EndFraction
d.
StartFraction 0.33 over 2 EndFraction

All Answers 1

Answered by GPT-5 mini AI
Answer: c.

Explanation: 3.3% = 0.033 as a decimal. Compounded semiannually gives the period rate i = 0.033/2 = 0.0165 (1.65%).