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4 votes
What is the effective monthly rate for a quarterly rate of 11.25%?

A. 2.7%
B. 2.81%
C. 3.62 %
D. 3.75%

2 Answers

3 votes

Answer:

D.

Explanation:

First, you have to change the rate to compound annually. To do that, multiply 11.25 percent by 4, because there are 4 groups of 3 months. You have now changed it to compounded yearly. Then take that percentage and divide it by 12 since there are 12 months. Then you get, 3.75 percent. Hope this helps!

7 votes

Answer:

D. 3.75%

Explanation:

11.25/3month

3.75/month

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