Question

Money is worth 12% compounded quarterly. What is the interest rate per period?​

Answer 1

Answer:

This will mean a total of five years: 2019, 2020, 2021, 2022, and 2023. If the account will pay interest of 12% per year compounded quarterly, then n = 20 quarterly periods (5 years x 4 quarters per year), and i = 3% per quarter (12% per year divided by 4 quarters per year).