{"id":49676,"date":"2024-04-15T22:59:14","date_gmt":"2024-04-15T22:59:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49676"},"modified":"2024-04-15T22:59:14","modified_gmt":"2024-04-15T22:59:14","slug":"finance-company-providing-loans-at-12-with-2-compounding-periods-per-year-periodic-rate-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/finance-company-providing-loans-at-12-with-2-compounding-periods-per-year-periodic-rate-is-classified-as\/","title":{"rendered":"Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;3% per quarter&#8221; option2=&#8221;6% per quarter&#8221; option3=&#8221;6% per year&#8221; option4=&#8221;0.1667 % per year&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 3% per quarter.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;3% per quarter&#8221; option2=&#8221;6% per quarter&#8221; option3=&#8221;6% per year&#8221; option4=&#8221;0.1667 % per year&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-49676","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/finance-company-providing-loans-at-12-with-2-compounding-periods-per-year-periodic-rate-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;3% per quarter&#8221; 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