Suppose the periodic rate for one month is 0.5%. Is the equivalent periodic rate for six months (pick one):
(i) equal to 6(0.5%) = 3%?
(ii) less than 3%?
(iii) greater than 3%?
Answer the question without doing calculations. Explain your choice.

Question

Quizplus · Accepted Answer

The Answer of Suppose the periodic rate for one month is 0.5%. Is the equivalent periodic rate for six months (pick one):
(i) equal to 6(0.5%) = 3%?
(ii) less than 3%?
(iii) greater than 3%?
Answer the question without doing calculations. Explain your choice.

Suppose the Periodic Rate for One Month Is 0