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

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

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