we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by dividing the periodic rate by the number of periods per year.

Name: we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by dividing the periodic rate by the number of periods per year.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

To find the nominal annual rate from a periodic rate, you multiply the periodic rate by the number of periods per year, not divide.

We Are Given a Periodic Interest Rate, Say a Monthly