Question

How many interest periods are there if the principal is compounded monthly for 5 years?

Answer 1

How many months are there in 5 years ?

Answer 2

12 * 5 = __

Answer 3

[AI-generated answer — Explain Bot]

To determine the number of interest periods when the principal is compounded monthly for 5 years, you need to multiply the number of years by the number of compounding periods per year.

In this case, the principal is compounded monthly, meaning there are 12 compounding periods in a year. Therefore, to calculate the number of interest periods, you would multiply the number of years (5) by the number of compounding periods (12) per year.

So, the number of interest periods would be 5 x 12 = 60.

Therefore, if the principal is compounded monthly for 5 years, there would be 60 interest periods.