Question 1118759
19% per year compounded annually is equal to 19/1 = 19% per year.


19% per year compounded semi-annually is equal to 19%/2 = 9.5% per semi-annual period.


19% compounded quarterly is equal to 19% / 4 = 4.75% per quarter.


19% compounded monthly is equal to 19% / 12 = 1.5833333333% per month.


19% compounded bi-monthly is determined by how bi-monthly is interpreted.


it can be interpreted as twice a month, or it can be interpreted as every 2 months.


both interpretations are, unfortunately, valid, according to the internet.


my own interpretation, however, takes into account that 2 payments per year would be semi-annual payments, not bi-annual payments.


therefore, i would assume bi-monthly means every 2 months, rather than twice a month, which would be interpreted as semi-monthly if you use the same logic as applied to semi-annually.


if bi-monthly is interpreted as twice a month, then the bi-monthly interest rate would be 19% 24 = .791666666667% per half month.


if bi-monthly is interpreted as every other month, then the bi-monthly interest rate would be 19% / 6 = 3.1666666667% per every 2 months.


i would go with every 2 months assumption, but do not really know what others would assume.