If interest is paid m times per year,then the per-period interest rate equals the:
A) effective annual rate divided by m.
B) compound interest rate times m.
C) effective annual rate.
D) annual percentage rate (APR) divided by m.

Question

Quizplus · Accepted Answer

The per-period interest rate is calculated by dividing the annual percentage rate (APR) by the number of compounding periods per year, m.

If Interest Is Paid M Times Per Year,then the Per-Period