Find the total number of compounding periods and the interest rate per period for the investment.
Term of
Investment	Nominal
(Annual) Rate (%)	Interest
Compounded	Compounding
Periods	Rate per
Period (%)
5 years	4.5	semiannually

To solve for the **total number of compounding periods** and the **interest rate per period**, we need to understand the relationship between these values when the interest is compounded semiannually (twice a year).

### 1. **Total Number of Compounding Periods:**
- **Compounding frequency:** Semiannual compounding means that interest is compounded **2 times per year**.
- **Term of investment:** 5 years.

So, the total number of compounding periods (N) is:
\[
N = 2 \times 5 = 10 \text{ periods}
\]

### 2. **Interest Rate per Period:**
- The **nominal annual interest rate** is given as **4.5%**.
- Since the interest is compounded semiannually, the interest rate per period will be half of the annual rate:
\[
\text{Rate per period} = \frac{4.5\%}{2} = 2.25\% \text{ per period}
\]

### Summary:
- **Total number of compounding periods:** 10
- **Interest rate per period:** 2.25%

Would you like more details or have any questions?

#### Related questions:
1. What is the formula for calculating compound interest over multiple periods?
2. How would the result change if the interest were compounded quarterly instead of semiannually?
3. Can you calculate the future value of an investment given a specific principal amount?
4. What is the difference between nominal and effective interest rates?
5. How does continuous compounding differ from semiannual compounding?

#### Tip:
Always make sure to match the compounding frequency with the term of the investment when calculating the total periods and rate per period.

Find the total number of compounding periods and the interest rate per period for the investment.
Term of Investment: 5 years, Nominal (Annual) Rate: 4.5%, Interest Compounded: Semiannually.

Learn how to calculate the total number of compounding periods and the interest rate per period for an investment with a term of 5 years, nominal annual rate of 4.5%, and semiannual compounding. This guide explains the key formulas and concepts involved in compound interest calculations. Ideal for students in Grades 9-12.

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