Homework Answers
Solution to the given question is Option C i.e Annual Percentage
Because as given in question Interest rate charged per period is multiplied by number of periods in a year which actually qualifies the definition of annual percentage rate.
Annual Percentage rate(APR) is the rate obtained by rate per period into no of period in the whole year.
Option A : False :Effective interest rate is the annual interest rate which takes into account compounding of interest rate over the period.
Option B : False :Period interest is the annual interest rate divided by no of periods in that year.
Option D : False :Daily interest is the interest rate which is for 1 single day.
Option E : False :Compound interest is intesrest on interest.
I hope all options are clear and answer as well.
Thanks:)
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