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Commerce · Q336

Financial Management

Graduate and Post Graduate · Commerce · question 336

Q336

Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as

A.
3% per quarter
B.
6% per quarter
C.
6% per year
Answer
D.
0.1667 % per year

Answer: Option C

Solution

Answer: Option C
Solution:
Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as 6% per year.