Calculate the periodic interest rate for 3.8% compounded quarterly.

Periodic Interest Rate

The interest rate charged on a loan or realized on an investment over a specific period of time.

Compounded Quarterly

This term describes the method of calculating interest by adding the interest to the principal sum every quarter, leading to compound interest.

Understand and calculate the periodic interest rate based on annual rates and compounding frequency.

Verified Answer

Final Answer :

0.95%

Learning Objectives

Understand and calculate the periodic interest rate based on annual rates and compounding frequency.