Compound interest is computed quarterly on $700 for seven years at 12 percent annual interest.The future value table is used by multiplying the $700 by which factor?
A)28 periods at 3 percent
B)7 periods at 3 percent
C)7 periods at 12 percent
D)28 periods at 7 percent

Question

Quizplus · Accepted Answer

Compound interest calculated quarterly over seven years at an annual rate of 12% means the interest is compounded 4 times a year (quarterly) for 7 years, totaling 28 periods, and the interest rate per period is 12%/4 = 3%.

Compound Interest Is Computed Quarterly on $700 for Seven Years