Fundamental Accounting Principles Solutions Manual 10th Edition
Interest rate is taken for (c) above, is 4% only instead of 8% based on the number of compounding. 8% per annum or 4% per semiannual has the same meaning. In contrast, number of periods increased from 12 to 24 as 2 times in a year for 12 years. To be Located in Table 2 S.1 No Interest Rate Number of Periods (a) 8% 20 (Compounded Annually) (b) 10% 5 (Compounded Annually) (c) 6% 8 (Compounded Semi-Annually) Interest rate is taken for (c) above, is 6% only instead of 12% because of the number of compounding.
12% per annum is equal to 6% per semiannual. In contrast, number of periods increased from 12 to 24 as 2 times in a year for 12 years.
Fundamental Financial Accounting Concepts Solutions
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Fundamental Financial Accounting Concepts Book
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