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Question
The number of conversion periods in a year, if the interest on a principal is compounded every two months is ___________
Options
2
4
6
12
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Solution
6
Explanation;
Hint:
Conversion period is the time period after which the interest is added to the principal.
If principal is compounded every two months then in a year, there will be `6(12/5)` conversion periods.
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