Question

What is the rate per interest period of 12% compounded quarterly?

Answer 1

how many quarters are there in 1 year?

Answer 2

Four.

Answer 3

@Nalemi

P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

A = P(1 + r)n

Answer 4

rate per interest period shall be 12/4 = 3% per quarter

Answer 5

rate per interest period shall be 12/4 = 3% per quarter