A $9,000 payment on March 1 was not paid. Instead $9,140.65 was paid earning 6.3% interest compounded semi-annually. The payment was made on July 1.

Question

Quizplus · Accepted Answer

The interest calculation for a period less than a year, especially when compounded semi-annually, does not match the scenario described. The interest for a few months would not result in such a precise and relatively high increase from $9,000 to $9,140.65, given the described interest rate and compounding frequency.

A $9,000 Payment on March 1 Was Not Paid