3% per quarter
6% per quarter
6% per year
0.1667 % per year
Answer is Right!
Answer is Wrong!
The correct answer is A. 3% per quarter.
The periodic rate is the interest rate that is applied to the loan balance each compounding period. In this case, the loan is compounded quarterly, so the periodic rate is 12% / 4 = 3% per quarter.
Option B is incorrect because it is the annual rate, not the periodic rate. Option C is incorrect because it is the annual rate, not the periodic rate. Option D is incorrect because it is the annual rate divided by 4, which is not the periodic rate.