Explain the difference between "nominal rate of interest" and "periodic rate of interest."

Question

Quizplus · Accepted Answer

The Answer is The "periodic rate of interest" is the percent interest earned in a single compounding period. The "nominal rate of interest" is the annual interest rate you obtain if you extend the periodic rate to a full year. This is done by multiplying the periodic rate of interest by the number of compounding periods in a year.

Explain the Difference Between "Nominal Rate of Interest" and "Periodic