If the annual interest is 12%,but the compounding is done quarterly,then the interest rate is 4% per period.

Name: If the annual interest is 12%,but the compounding is done quarterly,then the interest rate is 4% per period.
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Quizplus · Accepted Answer

When the annual interest rate is 12% and compounding is done quarterly, the interest rate per period is not 4% but rather 3%, because the annual rate is divided by the number of compounding periods per year (12% / 4 = 3%).

If the Annual Interest Is 12%,but the Compounding Is Done