Determine the nominal rate of interest if the periodic rate is 1.75% per quarter.
A) 1.75%
B) 3.5%
C) 5.25%
D) 7%
E) 21%

Name: Determine the nominal rate of interest if the periodic rate is 1.75% per quarter. A) 1.75% B) 3.5% C) 5.25% D) 7% E) 21%
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Question

Quizplus · Accepted Answer

The nominal rate of interest is calculated by multiplying the periodic rate by the number of periods in a year. Since the periodic rate is 1.75% per quarter, and there are 4 quarters in a year, the nominal rate is 1.75% * 4 = 7%.

Determine the Nominal Rate of Interest If the Periodic Rate