The contractual interest rate is usually stated as a(n)
A) monthly rate.
B) daily rate.
C) semiannual rate.
D) annual rate.

Question

Quizplus · Accepted Answer

The annual rate is the most common way in which the contractual interest rate is stated. This is because it provides a clear and consistent way to express the rate over a year's time. While other time periods may be used, such as monthly or daily rates, these are typically derived from the underlying annual rate.

The Contractual Interest Rate Is Usually Stated as A(n)