The number of periods for a consumer loan (n)is equal to the ________.
A)number of years times compounding periods per year
B)number of years
C)number of years in a period
D)number of compounding periods

Question

Quizplus · Accepted Answer

The number of periods for a consumer loan (n) is calculated by multiplying the number of years of the loan by the number of compounding periods per year. This accounts for loans that compound more frequently than annually, such as monthly or quarterly.

The Number of Periods for a Consumer Loan (N)is Equal