alleryIf interest is compounded quarterly, the quarterly rate is:
AOne fifth of annual
BOne fourth of annual
COne half of annual
DOne third of annual
Answer & Solution
Correct answer: B. One fourth of annual
1. A year holds four conversion periods.
2. The annual rate splits among them.
3. The rate is one fourth of the annual rate.
_Source: syllabus Mathematics, Chapter 8, Comparing Quantities._
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