Rikki deposited $5,000 into an account with an interest rate of 6% for 7 years. If the interest is compounded quarterly, how many compounding periods are there?
A) 1 period
B) 7 periods
C) 14 periods
D) 28 periods

Question

Quizplus · Accepted Answer

Interest compounded quarterly means it is compounded 4 times a year. For 7 years, the total compounding periods are 7 years * 4 = 28 periods.

Rikki Deposited $5,000 into an Account with an Interest Rate