If interest is paid m times per year, then the per-period interest rate equals the: Select...

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Question

If interest is paid m times per year, then the per-period interest rate equals the: Select...

If interest is paid m times per year, then the per-period interest rate equals the:

Select one:

a. annual percentage rate divided by m.

b. compound interest rate times m.

c. effective annual rate divided by m.

d. effective annual rate.

business finance

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Answer 1

Answer #1

The per period interest rate can be calculated by dividing the annual percentage rate by number of times interest paid per year.

Thus, the correct option is a, that is, annual percentage rate divided by m.

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Answer 2

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