The correct answer is D. semi-annual compounding.
Semi-annual compounding is a method of calculating interest that is applied twice a year. This means that the interest earned on the principal amount is itself earning interest. This can result in a higher final amount than if the interest were only compounded annually.
Annual compounding is a method of calculating interest that is applied once a year. This means that the interest earned on the principal amount is not itself earning interest. This can result in a lower final amount than if the interest were compounded semi-annually.
Annual discounting is a method of calculating the present value of a future sum of money. This is done by dividing the future sum by 1 plus the interest rate, compounded annually.
Semi-annual discounting is a method of calculating the present value of a future sum of money. This is done by dividing the future sum by 1 plus the interest rate, compounded semi-annually.
In conclusion, the future value of interest if it is calculated two times a year can be classified as semi-annual compounding.