To compound $100 quarterly for 20 years at 8%,we must use:
A)40 periods at 4%.
B)five periods at 12%.
C)10 periods at 4%.
D)80 periods at 2%.

Name: To compound $100 quarterly for 20 years at 8%,we must use: A)40 periods at 4%. B)five periods at 12%. C)10 periods at 4%. D)80 periods at 2%.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

Compounding quarterly for 20 years means 80 periods (4 quarters per year for 20 years). The annual rate of 8% is divided by 4 to get a quarterly rate of 2%.

To Compound $100 Quarterly for 20 Years at 8%,we Must