Multiple Choice
Your bank account pays a 6% nominal rate of interest.The interest is compounded quarterly.Which of the following statements is correct?
A) The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
B) The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
C) The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
D) The periodic rate of interest is 3% and the effective rate of interest is 6%.
Correct Answer:
Verified
Correct Answer:
Verified
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